Prices firm as spinners indulge in fresh buying

RECORDER REPORT

KARACHI: Spinners fresh buying interest helped the rates to sustain present levels on the cotton market on Tuesday in the process of business activity, dealers said.

The official spot rate was unchanged at Rs 7100, they added. In Sindh, seed cotton prices were at Rs 2400-3000 and in the Punjab, rates were at Rs 2600-3100, they said.

In the ready session, around 11000 bales of cotton changed hands between Rs 7000-7300, they said.

Cotton analyst, Naseem Usman said that shortage problem is causing price rise in the world market but it was surprising to note that in the local markets prices showing declining trend or retaining the present levels.

Reports of falling trend in supply of seed cotton and delay in sowing of cotton in Lower Sindh were creating uncertainties among the growers and farmers.

Besides, tight cotton supply owing to dwindling stocks and rising lint demand from spinners have propelled the ginners to hold back the commodity in order to get higher prices in days ahead, some experts said.

According to reports, in an effort to improve cotton production and variety, as well, the Punjab government has announced to provide subsidy of millions of rupees on approved varieties of cottonseed bag.

Adds Reuters: In New York, cotton futures moved sharply higher on Monday.

The following deals were reported: 7000 bales of cotton from Alipur at Rs 7000, 400 bales from Jalalpur at Rs 7100, 2487 bales from Rahim Yar Khan at Rs 7300 and 800 bales from Rahim Yar Khan at Rs 7000, 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"


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                                    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 05.03.2018


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37.324 kg          7,100      145        7,245         7,245            NIL


Equivalent


40 kgs             7,609      155        7,764         7,764            NIL


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