Most of the buyers kept on the sidelines as global market depressed following the different factors, dealers said on the cotton market on Friday. The official spot rate was unchanged at Rs 6,500, they added. Prices of seed cotton in Sindh and Punjab per 40 kg were unchanged at Rs 2800 and Rs 3100, dealers said. In the ready session, around 3000 bales of cotton changed between Rs 5400-6600, dealers said.
According to the market sources, some needy buyers made deals at lower rates and experts were conspicuous by their absence. Cotton analyst, Naseem Usman said that strong Indian rupee caused fall in cotton buying in the Indian market. NY cotton market is also under pressure due to disappointing news and likely to depict further softness, some analysts said.
Reports appeared that the US cotton export sales dropped for the first time in almost two years in the latest reporting week, official US data showed, confirming that high prices have curbed demand.
The drop in sales helped curtail a price rally seen on fears of tight nearby supplies that lifted prices to two-year highs in March.
Buyers from six countries cancelled at least 67,500 bales of upland cotton in the most recent reporting week, data from the US Agriculture Department (USDA) showed on Thursday, as New York futures hovered near two-year highs above 90 cents a lb.
Reuters adds: Cotton futures sank on Thursday after weekly US government export data indicated that high prices have crimped demand, easing concerns over tight nearby supplies in the world's top exporter that had lifted prices to two-year highs recently. The most-active July cotton contract on ICE Futures US sank 1.14 cents, or 1.2 percent, to settle at 90.29 cents a lb after hitting a two-week low of 90.15 cents.
The spot May ICE contract struck a more than one-month low of 88.98 cents before closing down 1.42 cents, or 1.6 percent, to settle at 89.02 cents a lb, under added pressure from the index fund roll.
The following deals were reported: 1200 bales from Ghotki at Rs 5600, 200 bales from Khanewal (Low Quality) at Rs 5400, 600 bales from Chichawatni at Rs 6150, 300 bales from Duniyapur at Rs 6500, 200 bales from Khanewal at Rs 6500, 200 bales from Depalpur at Rs 6550, 200 bales from Gojra at Rs 6550, 200 bales from Rahim Yar Khan at Rs 6500, 200 bales from Chichawatni at Rs 6575 and 200 bales from Mian Chano at Rs 6600, they said.
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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"
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MICRONAIRE VALUE BETWEEN 3.8 TO 4.9 NCL
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Rate Ex-Gin Upcountry Spot Rate Spot Rate Difference
For Price Ex-Karachi Ex. KHI. As Ex-Karachi
on 10.04.2014
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37.324 Kgs 6,500 155 6,655 6,655 NIL
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Equivalent
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40 Kgs 6,966 155 7,121 7,121 NIL
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