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Trade activity came down on the cotton market on Thursday as leading mills were on the sidelines due to higher rates, dealers said.

The official spot rate was unchanged at Rs 8600, they added. In ready session, over 10,000 bales of cotton changed hands between Rs 7800 and Rs 8850, they said. Rates of seed cotton per 40kg in Sindh were modestly higher at Rs 3600-4100 and in the Punjab prices were at Rs 3800-4150, they said. In Balochistan, cotton prices showed rising trend at Rs 8300-8500, seed cotton prices were also higher at Rs 4000-4300, they said.

In Sindh, Binola prices per maund were at Rs 1300-1500 and in Punjab rates were at Rs 1450-1600, they said and adding that polyester fibre per kg rates picked up more Rs 5 to Rs 190.

Some brokers said that main buyers were not interested in local cotton owing to higher rates. Sharing the same views, cotton analyst, Naseem Usman said that many leading buyers keen to import cotton on cheaper rates and better quality.

Fresh rains in the country may hurt cotton quality and production, as well, he added.

Other analysts said that in Sindh and Punjab, pest attack is likely, this factor could create short supply position.

Reuters adds: ICE cotton futures slipped to their lowest in two-weeks in low volume trade on Wednesday as demand woes loom for the natural fiber due to the protracted U.S.-China trade war, along with expectations of a big harvest from major producers.

The most-active cotton contract on ICE Futures U.S. December fell 0.1% at 60.35 cents per lb as of 2:08 p.m. EDT (1808 GMT), having fallen to the lowest level since Sept. 12 at 59.63 cents/lb.

Total futures market volume fell by 7,983 to 11,804 lots. Data showed total open interest fell 66 to 233,725 contracts in the previous session.

The following deals reported: Some 800 bales of cotton from Shahdadpur at Rs 7800/8000, 600 bales from Tando Adam at Rs 7800/7900, 400 bales from Hala at Rs 8100, 1200 bales from Saleh Pat at Rs 8675/8700, 400 bales from Moro at Rs 8600, 1200 bales from Khairpur at Rs 8650/8700, 1000 bales from Nawabshah at Rs 8150/8300, 1000 bales from Sakrand at Rs 8200/8400, 1000 bales from Bahawal Nagar at Rs 8800, 600 bales from Chistian at Rs 8800, 400 bales from Faqeerwali at Rs 8800, 400 bales from Fort Abbas at Rs 8800, 400 bales from Haroonabad at Rs 8800, 600 bales from Layyah at Rs 8700, 400 bales from Vehari at Rs 8600 and 1000 bales from Donga Bonga at Rs 8850, they said.


The KCA Official Spot Rate for Local Dealings in Pakistan Rupees





Rate Ex-Gin Upcountry Spot Rate Spot Rate Difference

For Price Ex-Karachi Ex. KHI. As Ex-Karachi

on 25-09-2019


37.324 kg 8,600 160 8,760 8,760 NIL


40 kgs 9,217 171 9,388 9,388 NIL


Copyright Business Recorder, 2019

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