Panic buying seen on the cotton market on Wednesday following the Pakistan Cotton Ginner's Association (PCGA)'s fortnightly report, depicting over 26 percent decline in production against last year, dealers said. The official spot rate gained more Rs 150 to Rs 8650, they added. In ready session, about 23,000 bales of cotton changed hands between Rs 7750 and Rs 9000, 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 picked up more Rs 5 to Rs 190.

Market sources said that fall in PCGA report, indicating that rates of cotton go up in the coming days. Country would have to increase import of cotton in days to come, they added.

Cotton analyst Naseem Usman said ginners were not keen to sell at the present levels but on the other hand, the mills and spinners lay hands over the better quality cotton to meet their requirements.

According to the latest data released by the Pakistan Cotton Ginner's Association (PCGA), by September 15, 2019, the cotton arrival in the local markets decreased by 26.41% as about 1,852,408 cotton bales arrived against the arrival of 2,517,345 bales of same period of last year.

Adds Reuters: Cotton prices fell nearly 2% on Tuesday, dragged down by falling crude oil prices and a lack of follow through buying of the natural fibre after hopes of a deal between the United States and China last week.

Cotton contracts for December settled down 1.21 cent, or 1.9 %, at 61.38 cents per lb. It traded within a range of 60.8 and 62.56 cents a lb.

Total futures market volume rose by 3,688 to 33,201 lots. Data showed total open interest gained 181 to 233,209 contracts in the previous session.

The following deals reported: 2600 bales of cotton from Tando Adam at Rs 7900/8200, 2200 bales from Shahdadpur at Rs 7800/8000, 1400 bales from Sanghar at Rs 7750/7900, 1200 bales from Nawabshah at Rs 8300, 1800 bales from Khairpur at Rs 6800/8650, 800 bales from Rohri at Rs 8650, 1600 bales from Saleh Pat at Rs 8600/8675, 1000 bales from Khanewal at Rs 8775/9000, 400 bales from Fazilpur at Rs 8800, 2600 bales from Sadiqabad at Rs 8750/8850, 800 bales from Dera Gazi Khan at Rs 8750, 400 bales from Faqeerwali, 1800 bales from Haroonabad at the same rate, 2000 bales from Rajanpur at Rs 8750/8850, 400 bales from Kasowal at Rs 8750, 200 bales from Chichawatni at Rs 8650, 200 bales from Pir Mehar done at the same rate, same number from Chistian at Rs 8600, same figure from Hasilpur at the same rate and 400 bales from Muzaffar Garh at Rs 8500, 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 17-09-2019

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37.324 kg         8,650       160        8,810         8,660        + 150/-

Equivalent

40 kgs            9,270       171        9,441         9,280        + 161/-

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Copyright Business Recorder, 2019