Falling trend persisted on the local cotton market on Wednesday as the textile mills threatened to extend strike if the Regulatory Duty (RD) not removed, dealers said. The Karachi Cotton Association (KCA) official spot rate was lowered by Rs 50 to Rs 6450. In the ready business, not a single deal finalised due to lack of buying interest, they added.
Future trend in the market is unpredictable as prices are still on the downside and it looks that the mills may continue strike, the rates may go down further, they added. In the meantime, advisor to the Prime Minister on finance Dr Abdul Hafeez Shaik invited the textile sector stakeholders to discuss the present issue, Naseem Usman said.
Commenting on the production for the coming season, he said that arrival of new crop is likely to start by the middle of June. On Tuesday the NY cotton futures closed higher on improved demand expectations from China and broad gains in soft commodities, traders said.
The key July cotton contract climbed one cent to end at 82.20 cents per lb, trading from 81.35 to 82.44 cents. Volume traded in the July contract stood at 8,613 lots at 2:30 pm EDT (1830 GMT). New-crop December cotton futures ended 0.49 cent higher at 77.91 cents, ranging from 77.40 to 77.95 cents.
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The KCA Official Spot Rate for Local Dealings in Pak Rupees
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FOR BASE GRADE 3 STAPLE LENGTH 1-1/32"
MICRONAIRE VALUE BETWEEN 3.8 TO 4.9 NCL
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Rate Ex-Gin Upcountry Spot Rate Ex-Karachi
for Price Sales Tax @ 15%
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37.324 Kgs 6,450.00 100 6,550.00
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Equivalent
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40 Kgs 6,912.00 100 7,012.00
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