Cotton prices maintained a firm outlook on the cotton market on Friday due to renewed buying by mills and spinners, dealers said. The official spot rate was unmoved at Rs 7500, they added. In both Sindh and Punjab, seed cotton prices were at Rs 2800-3100, they said. In the ready session, prices also gained momentum as over 6000 bales of cotton changed hands between Rs 6600-7800, they said.
Some brokers were of the opinion that it was strong demand, which helped the rates to keep present levels. Short supply of quality cotton remains a major issue, they said and adding that recent rains in both the Punjab and Sindh may help in achieving the cotton target for the next year. Cotton analyst, Naseem Usman also said that improved flow of irrigation water and rains in the country will also improve the quality of cotton and size, as well.
Besides, he said that in India prices of cotton went up as China has started importing same commodity to meet demand. According to reports, the Punjab government has directed all the district administrations to take representatives from local government on board in order to have their cooperation and assistance during pre-flood arrangements. Pre-flood arrangements reviewed to combat any possible threat of flood.
In the international markets cotton prices rose during the session, particularly in India after renewed buying by China, they said. The following deals were reported: 1213 bales of cotton from Mirpur Dewan at Rs 7800, 1800 bales from Mirpur Mathilo at Rs 7700, 2000 bales from Bahawalpur at Rs 7400 and 400 bales from Khanewal at Rs 6600, 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 12-04-2018
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37.324 kg 7,500 145 7,645 7,645 NIL
Equivalent
40 kgs 8,038 155 8,193 8,193 NIL
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