Trade activity came down on the cotton market on Saturday as the ginners were reluctant to lower asking prices of fine types, dealers said. The official spot rate was unchanged at Rs 8650, they added. In ready session, about 12,000 bales of cotton changed hands between Rs 7900 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. According to the market sources trading activity came down because the ginners were not interested in bring down prices of better quality.

Besides, arrivals are short due to rains in the country, they said and adding that the mills were trying to lay hands over the quality cotton but the ginners were not ready to oblige them. To keep a balance between demand and supply, all Pakistan Textile Mills Association (APTMA) has demanded of the government to remove duties on cotton import, but it looks difficult now.

Cotton analyst, Naseem Usman said that prices may not show sharp fall owing to short supply position. ICE cotton futures edged up on Friday as investors covered short positions, but prices traded not far from a two-week low touched earlier in the session on expectations of robust crop and faint demand.

The most-active cotton contract on ICE Futures US December was up 0.43% at 60.54 cents per lb as of 1:46 pm EDT (1746 GMT). It traded within a range of 59.58 and 60.65 cents a lb.

Total futures market volume fell by 1,433 to 15,344 lots. Data showed total open interest gained 436 to 234,731 contracts in the previous session. The following deals reported: 1600 bales of cotton from Tando Adam at Rs 7900/8400, 800 bales from Shahdadpur at Rs 7900, 800 bales from Hala at Rs 8100/8675, 400 bales from Sakrand at Rs 8400, 600 bales from Nawabshah at Rs 8400, 1200 bales from Saleh Pat at Rs 8800/8850, 1400 bales from Khairpur at Rs 8700/8800, 1000 bales from Shadan Lund at Rs 8850, 400 bales from Marrot at Rs 8850, 1200 bales from Haroonabad at Rs 8800/8850, 400 bales from Mianwali at Rs 8850, 200 bales from Faqeerwali at Rs 8800, 1200 bales from Layyah at Rs 8800 and 400 bales from Yazman Mandi at Rs 8800, 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 27-09-2019

===========================================================================

37.324 kg         8,650       160        8,810         8,810            NIL

Equivalent

40 kgs            9,270       171        9,441         9,441            NIL

===========================================================================

Copyright Business Recorder, 2019