Cotton prices went up sharply on the cotton market on Monday in the process of moderate trading activity, dealers said. The official spot rate maintained rising trend, picking up Rs 150 to Rs 8350, they added. In ready session, about 10,000 bales of cotton changed hands between Rs 7700 and Rs 8700, they said. Rates of seed cotton per 40kg in Sindh were at Rs 3600-3900 and in the Punjab prices were at Rs 3600-4100, they said. In Balochistan, cotton prices showed rising trend at Rs 8300-8500, seed cotton prices were also higher at Rs 4000-4400, they said.

In Sindh, Binola prices per maund were at Rs 1400-1550 and in Punjab rates were at Rs 1550-1650, they said and adding that polyester fibre per kg rates were up by Rs 5 to Rs 185. Market sources said that cotton prices went up sharply on surge in oil prices in the world markets. Commenting on present trend in the market, cotton analyst, Naseem Usman said that prices of cotton likely to move up further in the coming days if dollar shows it's muscle versus the rupee.

Mills and spinners were busy in forward buying of fine type to keep themselves away from the future losses, other brokers said. Adds Reuters: Oil prices surged to six-month highs on Monday while Wall Street futures fell and safe-haven bets returned after weekend attacks on Saudi Arabia's crude facilities knocked out more than 5% of global oil supply.

US crude futures were last up 11% at $61.10 a barrel, coming off highs on expectations other global oil suppliers would step in to lift output.

The following deals reported: 1200 bales of cotton from Shahdadpur at Rs 7800/7900, 1400 bales from Sanghar at Rs 7700/7800, 2000 bales from Tando Adam at Rs 7800/8000, 1000 bales from Nawabshah at Rs 8000/8200, 600 bales from Saleh Pat at Rs 8400, 400 bales from Kabirwala at Rs 8700, 600 bales from Haroonabad at Rs 8600/8650, 400 bales from Samundri at Rs 8300, 400 bales from Bahawal Nagar at Rs 8650/8700, 600 bales from Vehari at Rs 8575, 200 bales from Layyah at Rs 8600, 200 bales from Shujabad at Rs 8650, 600 bales from Mian Chunnu at Rs 8700 and 400 bales from Khanewal at Rs 8700, 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"

                    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 14-09-2019

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37.324 kg          8,350       160       8,510       8,360          + 150/-

Equivalent

40 kgs             8,949       171       9,120       8,959          + 161/-

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Copyright Business Recorder, 2019