Trade activity picks up on cotton market

Trade activity picks up on cotton market

Business activity improved on the cotton market on Monday on quality factor of seed cotton, dealers said. The official spot rate depreciated by Rs 50 to Rs 6,550, dealers said. In Sindh, seed cotton prices gained Rs 100 to Rs 3000-3300, in Punjab Phutty rates were at Rs 2900-3350, per 40 kg, respectively, they said. In ready business, nearly 1700 bales of cotton changed hands between Rs 6600 and Rs 6900, they said.
Market sources said that during the last sessions, lack of buying interest fully seen among the leading buyers due to quality constraints owing to moisture content. Cotton analyst, Naseem Usman said that the week started with improved trading activity and it seems that with the passage of time mills will take more interest in fresh buying on quality factor. Supply of fine quality will make progress but at the same time, this factor would propel ginners to raise asking prices, he said.

Reuters adds: China’s state reserves have sold more than 1.95 million tonnes of cotton since daily auctions began in May. Demand has dropped since news emerged late last month that the auctions would run for a longer period than planned.

The following deals were reported: 1600 bales of cotton from Sanghar at Rs 6500-6652, 400 bales from Mirpurkhas at Rs 6600, 800 bales from Tando Adam at the same rate, 400 bales from Kotri at the equal rate, 1000 bales from Shahdadpur at Rs 6600-6700, 400 bales from Moro at Rs 6700, 100 bales from Tandlian Wala at Rs 6900 and same figure from Gharma Raja at Rs 6890, dealers said.



The KCA Official Spot Rate for Local Dealings in Pakistan Rupees




                                    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 13-08-2016


37.324 kg         6,550       135         6,685        6,735           - 50


40 kgs            7,020       145         7,165        7,218           - 53



Copyright Business Recorder, 2016

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