Source: Business Recorder

RECORDER REPORT | October 10, 2019

KARACHI: Prices went up on the cotton market on Tuesday amid persistent demand from mills, dealers said.

The official spot rate was higher by Rs 50 to Rs 8750, they added. In ready session, over 12,000 bales of cotton changed hands between Rs 7800-9000, they said. Rates of seed cotton per 40kg in Sindh were at Rs 3300-4200 and in the Punjab prices were at Rs 3600-4200, they said. In Balochistan, seed cotton prices were at Rs 4000-4600 and cotton prices were at Rs 8700-8900, they said. In Sindh, Binola prices per maund were at Rs 1550-1650 and in Punjab rates were at Rs 1450-1550, they said and adding that polyester fibre was at Rs 187.

According to the market sources, most of the leading mills did buying of fine quality despite higher rates. Cotton analyst, Naseem Usman explaining the current situation in the market said that short supply of best type is keeping genuine buyers away from big deals. Economic crisis in the world, pushing down cotton prices due to slow demand, other experts said. The ginners were trying to gain profit as much as they can, but on the other hand, the mills have other option to get better quality cotton at cheap rates, they said.

Adds Reuters: Cotton prices fell more than 1.5% on Tuesday as tensions between Washington and Beijing heightened ahead of this week’s trade talks, but uplift in the grains market helped the natural fibre pare some losses. The most active cotton contract on ICE Futures US, the second-month December futures, was down 0.61 cent, or 1%, at 61.22 cents per lb as of 1:15 p.m. EDT (1715 GMT). Total futures market volume fell by 879 to 16,593 lots. Data showed total open interest gained 606 to 235,963 contracts in the previous session. (Source: Business Recorder)