Prices slid on the cotton market on Friday mills preferred to import instead of purchasing local commodity, dealers said. The official spot rate was unchanged at Rs 7300, they added. In both Sindh and Punjab, seed cotton prices were at Rs 2800-3100, they said.
In the ready session, around 1200 bales of cotton changed hands between Rs 6000-6400, they said. According to market sources, main buyers were on the sidelines due to less buying interest. They said that most of the unsold stock was poor variety with the ginners, which propelled mills to make purchase from other sources.
Cotton analyst, Naseem Usman said that the US-China trade war kept cotton market in the grip of uncertainties. Other experts observed that as a whole business activity may be disturbed as the US President Donald Trump threatened 100 billion dollar in additional tariffs on China, in a fresh escalation of trade tensions between the world's largest economies.
Increasingly combative statements from Washington and Beijing have stirred fears of a full-blown trade war that could hurt global economic growth, though investors are holding out hope that negotiations will result in a far less damaging compromise. Within hours, China responded, saying it would take new comprehensive measures to safeguard the country's interests if the United States sticks to its protectionist behaviour.
In the US and India, cotton prices were higher, while in China markets were closed due to local holiday, they said. The following deals were reported: 800 bales of cotton from Layyah sold at Rs 6400 and 400 bales from Haroonabad at Rs 6000, they said.
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The KCA Official Spot Rate for Local Dealings in Pakistan Rupees
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FOR BASE GRADE 3 STAPLE LENGTH 1-1/16"
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MICRONAIRE VALUE BETWEEN 3.8 TO 4.9 NCL
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Rate Ex-Gin Upcountry Spot Rate Spot Rate Difference
For Price Ex-Karachi Ex. KHI. As Ex-Karachi
on 05-04-2018
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37.324 kg 7,300 145 7,445 7,445 NIL
Equivalent
40 kgs 7,823 155 7,978 7,978 NIL
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