Rates maintained rising trend on the cotton market on Tuesday in the process of improved trading activity, dealers said. The official spot rate gained Rs 100 to Rs 7,800, they added. Prices of seed cotton in Sindh and Punjab were at Rs 3500-4000, they said.
In ready session, 1400 bales of cotton finalised between Rs 8100 and Rs 8200, they said. According to the market sources, new cotton crop season started and prices also went up sharply, indicating that rates may rise further in the coming days.
Cotton analyst Naseem Usman said that slow arrivals of seed cotton did not encourage mills to make new purchase. He also said that the government has imposed Customs Duty on import of several yarn items, after the move, it looks that the textile industry may suffer from losses, he added.
The quality factor is also another factor behind the thin activity, brokers said. Growers stopped picking of phutty as rains again started in most parts of the country, they said. In the international market, prices of cotton moved both ways in the process of trading, they said.
Following deals reported: approximately 400 bales of cotton from Tando Adam sold at Rs 8150-8175, same figure from Shahdadpur finalised at Rs 8100-8150, 400 bales from Sanghar at Rs 8100, 200 bales from Burewala at Rs 8200 and 200 bales more from Vehari done at the same rate, they added.
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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
Rate Ex-Gin Upcountry Spot Rate Spot Rate Difference
For Price Ex-Karachi Ex. KHI. As Ex-Karachi
on 02-07-2018
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37.324 kg 7,800 145 7,945 7,845 + 100/-
Equivalent
40 kgs 8,359 155 8,514 8,407 + 107/-
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