January 12, 2020
KARACHI: Modest trading activity was again witnessed on the cotton market on Saturday owing to short supply of best quality lint, dealers said. The official spot rate maintained overnight level at Rs9000, they added. In ready session, about 2600 bales of cotton changed hands between Rs8500-9250, they said.
Rate of seed cotton per 40kg in Sindh low quality was at Rs2800, while the best quality picked up Rs200 to Rs4200, and in the Punjab prices were at Rs3000 while the fine type was up by Rs100 to Rs4600, they said. In Sindh, Binola prices per maund were at Rs1400-1800, in Punjab rates were at Rs1650-1800, they said and polyester fibre was available at Rs181 per kg, they said.
According to the market sources, mills and spinners were keen to purchase cotton at the present levels, but the ginners were not ready to sell below their psychological levels. Cotton analyst, Naseem Usman attributed the decline in activity to wait-and-see attitude adopted by the buyers. Transporters’ country-wide strike disrupted normal activity in the cotton. Furthermore, expectations for a pact between China and the US are propelling sellers to keep away from new deals, he added.
Besides, China said on Friday that it expects higher cotton imports for 2019/20 on prospects of a Sino-US trade deal. Cotton imports for the year are now seen at 1.8 million tonnes, up 200,000 tonnes from last month’s forecast, the Ministry of Agriculture and Rural Affairs said in its monthly crop report. (Source: Business Recorder)