According to the market sources some developments on the economic front, propelled leading participants to keep on the sidelines just to see developments. Cotton analyst, Naseem Usman said that volume of business fell as both buyers and sellers adopted cautious attitudes towards forward deals.
The Businessmen Panel (BMP) for Federation of Pakistan Chambers of Commerce and Industry has called for extensive Free Trade Agreements (FTA) between Pakistan and other members of world community ultimately strengthening country's export base. Besides, the Federal Board of Revenue (FBR) has notified zero percent sales tax on the import of cotton from February 1, 2019.
Experts were of the opinion that we need to provide pure cotton to achieve desired target. To improve cotton output, we have already formed a company, which is a joint venture. They expect that when new seed is available, cotton production will also increase with the passage of time.
Commenting on the rupee's slight recovery versus the dollar, cotton analyst, Naseem Usman said that increase in the country's foreign exchange reserves is a positive development, this factor will help the national currency to move further up. Whereas, 0.25 basis points rise in the State Bank of Pakistan (SBP) policy rate, will increase cost of doing business or cost of production.
Adds Reuters: ICE cotton futures settled nearly unchanged on Thursday, as the market awaited progress in the trade talks between top exporter the United States and China, the biggest consumer of the natural fiber. The most active cotton contract on ICE Futures US-the March contract-settled up 0.04 cent, or 0.05 percent, at 74.4 cents per lb.
Total futures market volume rose by 11,407 to 37,472 lots. Data showed total open interest fell 119 to 231,509 contracts in the previous session. The following deals reported: 400 bales of cotton from Ghotki at Rs 8750, same figure from Bahawalpur at Rs 8800-8850, 374 bales from Alipur at Rs 8400 and 200 bales from Yazman Mandi at Rs 8200-8400, they said.
===========================================================================
The KCA Official Spot Rate for Local Dealings in Pakistan Rupees
---------------------------------------------------------------------------
FOR BASE GRADE 3 STAPLE LENGTH 1-1/16"
---------------------------------------------------------------------------
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 31-01-2019
===========================================================================
37.324 kg 8,700 160 8,860 8,860 NIL
Equivalent
40 kgs 9,324 171 9,495 9,495 NIL
===========================================================================