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Trade activity came down modestly on the cotton market on Monday as some leading buyers were on the sidelines due to higher rates of fine quality, dealers said. The official spot rate was unchanged at Rs 8550, they added. In ready session, over 15,000 bales of cotton changed hands between Rs 7800 and Rs 8800, 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 some leading mills have already bought fine quality to meet their demand and partly because of rising fears of short supply position.

The ginners are trying to sell as much as they can to get better profit, other brokers said.

Cotton analyst Naseem Usman said in India, cotton prices lost Rs 300-1000 per candy following the reports of increase in cotton output.

According to reports, India's cotton production in 2019/20 is likely to jump as much as 20% from a year ago to the highest level in five years due to a bigger cultivated area and a boost to yields from above-average monsoon rains, a senior industry official told Reuters.

Higher production by the world's biggest producer could put pressure on local prices and force New Delhi to buy the crop from farmers at a mandated price.

The South Asian country could produce 37.5 million cotton bales in 2019/20 marketing year starting from Oct. 1 compared to 31.2 million bales a year ago, Pradeep Jain, president of Khandesh Ginning and Pressing Factory Owners and Traders Association told Reuters on the sidelines of a conference.

The following deals reported: 1400 bales of cotton from Shahdadpur at Rs 7850/8000, 2000 bales from Tando Adam at Rs 7850/8000, 400 bales from Qazi Ahmed at Rs 8350, 600 bales from Nawabshah at Rs 8500, 400 bales from Saleh Pat at Rs 8650, 800 bales from Khairpur at Rs 8650, 1200 bales from Rajanpur at Rs 8750/8800, 400 bales from Dera Ghazi Khan at Rs 8700, 200 bales from Daranwala at Rs 8700, 1400 bales from Layyah at Rs 8675, 200 bales from Vehari at Rs 8650, 400 bales from Bahawalpur at Rs 8650, 200 bales from Mian Chunnu at Rs 8650, 600 bales from Burewala at Rs 8600/8650, 600 bales from Bahawal Nagar at Rs 8650, 1000 bales from Hasilpur at Rs 8750 and 200 bales from Mongi Bangla at Rs 8250, 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 21-09-2019

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37.324 kg 8,550 160 8,710 8,710 NIL

Equivalent

40 kgs 9,163 171 9,334 9,334 NIL

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