Cotton spot rate unchanged amid active trading

Normal trading was seen happening on Tuesday at the Karachi Cotton Exchange, the spot rate also remained unchanged. The spot rate stood unchanged at Rs4,950 per maund (37.324kg) and Rs5,305 per 40kg. Ex-Karachi price also remained the same at Rs5,100 per maund and Rs5,465 per 40kg after addition of Rs150 and Rs160 as upcountry expenses, respectively.

The KCE recorded transactions of around 20,000 bales in the range of Rs4,000 per maund to Rs5,200 per maund.

Transactions were recorded from Shahdadpur, Tando Adam, Sanghar, Rohri, Jalalpur, Kabbirwali, Khanewal, Faqirwali, Haroonabad, Lodhran, Mianwali, Taunsa Sharif, Shadan Lund, Sadiqabad, Liaquatpur, Khanpur, Rahim Yar Khan and Dera Ghazi Khan.

Prices of seed cotton in Sindh also remained unchanged at Rs 1800 and 2300 while in the Punjab phutti rates showed no change at Rs 2000 and Rs 2600, dealers said.

Some brokers said that dwindling stock of fine cotton inducing buyers to purchase as much as they can. Cotton analyst, Naseem Usman said that despite the declining trend in the international market, prices maintained firm posture and it looks that buying spree may continue in times to come.

According to Nasim Usman, chairman of the KCA, buying of cotton continued in the market, but there was no increase seen in prices due to low yarn demand.