Seed cotton prices fell sharply on the cotton market on Friday in the process of moderate trading, dealers said. The official spot rate was unchanged at Rs 5,550, they added. In the session, over 15,000 bales of cotton changed hands between Rs 5550 and 5700, they said. In Sindh, rates gave up overnight gains, losing Rs 150 to Rs 2550 and Rs 2650, in Punjab prices were down by Rs 100 to Rs 2450 and Rs 2550, they said.
Decline in the rates was expected after the release of seed cotton figures, some brokers said. Cotton analyst, Naseem Usman prices in the local market may fall in days to come. Demand in the world cotton market is not picking up, this factor likely to propel the mills to adopt wait-and-see attitude, he added. According to a report, speculations mounted that China's plans for its cotton policy would crimp import demand in the world's top consumer.
Reuters adds: Cotton futures fell on Thursday on worries over demand in top consumer China after recent government policy statements amid a broader commodities sell-off. The second-month December cotton contract on ICE Futures US closed down 0.63 cent, nearly 1 percent, at 65.05 cents a lb after hovering below its near-term moving averages throughout the day.
The following deals reported: 2000 bales of cotton from Shahdad Pur at Rs 5575-5600, 1600 bales of cotton from Tando Adam at Rs 5575-5600, 1000 bales from Mir Pur Khas at Rs 5575-5600, 2400 bales from Sanghar at Rs m5550-5600, 1000 bales from Hyderabad at Rs 5575-5600, 800 bales from Hala at Rs 5575-5600, 600 bales from Nawab shah at Rs 5600, 400 bales from Sakrand at Rs 5600, 400 bales from Bahawal Nagar at Rs 5600, 200 bales from Jhang at Rs 5600, 200 bales from Tandlian at Rs 5600, 600 bales from Chichawatni at Rs 5600-5700, 200 bales from Depal Pur at Rs 5625, 200 bales from Vehari at Rs 5625, 1000 bales from Khanewal at Rs 5625-5680, 200 bales from Yazman Mandi at Rs 5650, 200 bales from Shehar Sultan at Rs 5650, 400 bales from Haroonabad at Rs 5650, 200 bales from Fort Abbas at Rs 5650, 400 bales from Mian Chano at Rs 5700, 1200 bales from Mian Wali at Rs 5700, 200 bales from Kabir Wala at Rs 5700, they said.
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The KCA Official Spot Rate for Local Dealings in Pakistan 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 18.09.2014
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37.324 Kgs 5,550 150 5,700 5,700 NIL
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Equivalent
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40 Kgs 5,948 160 6,108 6,108 NIL
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