Cotton prices maintained steady trend on the local market on Tuesday as leading mills lay hands over the fine type to replenish their stock, dealers said. The official spot rate was unchanged at Rs 8700, they added. In ready session, about 20,000 bales of cotton changed hands between Rs 7700 and Rs 9000, they said. Rates of seed cotton per 40kg in Sindh were at Rs 3600-4150 and in the Punjab prices were at Rs 3700-4200, they said. In Balochistan, cotton prices were at Rs 8300-8500, seed cotton prices were at Rs 4200-4700, 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 rate shed modestly at Rs 187. According to the market sources, local mills were more active to cover forward buying of fine cotton.

Cotton analyst, Naseem Usman said that persisting demand is helping rates to keep stable levels, it looks that rates may hold present levels in the near future. According to reports, Chinese markets will be closed for a week-long holiday that marks the 70th anniversary of the founding of the People's Republic of China.

Adds Reuters: ICE cotton futures rose to a one-week high on Monday, marking its first monthly gain in six months before settling down as worries about US-China trade eased and grains markets rallied on a bullish quarterly stocks report from the US Department of Agriculture (USDA). Cotton contract for December settled marginally down 0.11% at 60.83 cents per lb. It hit 61.13 cents a lb earlier in the session, its highest since September 23.

Total futures market volume rose by 890 to 21,225 lots. Data showed total open interest gained 746 to 235,477 contracts in the previous session.

The following deals reported: 1600 bales of cotton from Tando Adam at Rs 7950/8000, 1200 bales from Shahdadpur at Rs 7700/7800, 600 bales from Hyderabad at Rs 7800, 400 bales from Kotri at Rs 7800, 400 bales from Nawabshah at Rs 8150, 400 bales from Saleh Pat at Rs 8800, 800 bales from Dour at Rs 8200/8350, 200 bales from Gupchani at Rs 8200, 600 bales from Bandhi at Rs 8350, 200 bales from Chowdagi at Rs 8100, 2000 bales from Khairpur at Rs 8700/8800, 1000 bales from Rohri at Rs 8725/8750, 2000 bales from Khanewal at Rs 9000, 1200 bales from Taunsa Sharif at Rs 8800/8900, 800 bales from Mianwali at Rs 8850, 200 bales from Chowk Sarwar at Rs 8825, 400 bales from Bahawal Nagar at Rs 8800, 800 bales from Chichawatni at Rs 8700/8800, 400 bales from Faqirwali at Rs 8800, 400 bales from Fazilpur at Rs 8800, 200 bales from Hasilpur at Rs 8800, 200 bales from Rajanpur at Rs 8700/8800, 200 bales from Shadan Lund at Rs 8800, 1200 bales from Layyah at Rs 8750, 400 bales from Haroonabad at Rs 8750, 400 bales from Bahawalpur at Rs 8750, 400 bales from Yazman Mandi at Rs 8750, 1000 bales from Vehari at Rs 8700/8725 and 400 bales from Burewala at Rs 8650, 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 30-09-2019

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37.324 kg         8,700       160         8,860        8,860            NIL

Equivalent

40 kgs            9,324       171         9,495        9,495            NIL

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Copyright Business Recorder, 2019