Brisk trading activity was seen on the cotton on Saturday amid rising fears of increase in prices, dealers said. The official spot rate maintained overnight level at Rs 5,200, they added. In Sindh, rates were at Rs 2450 and Rs 2600, in Punjab prices increased slightly to Rs 2500 and Rs 2700, they said.
In the ready session, nearly 23000 bales of cotton changed hands between Rs 5200 and Rs 5400, they said. Since the Trading Corporation of Pakistan (TCP) announced to purchase cotton, the prices stabilised, dealers said. Buyers were worried about fresh rise in the rates and covering the forward deals as much as they can, cotton analyst, Naseem Usman said.
Reuters adds: cotton futures fell over 1.5 percent on Thursday after US export data revealed a sharp slump in sales last week, kindling concerns about weakening appetite for fibre from foreign mills. Sales data showed US exporters sold just under 69,000 bales of cotton in the week to October 2, down 70 percent from the previous week and 35 percent lower than the prior four-week period, and included cancellations from Mexico and Colombia.
The news drove the most-active December cotton contract on ICE Futures US to their intraday low of 63.12 cents. Prices finished down 0.95 cent, or 1.5 percent, at 63.94 cents a lb. Cotton futures maintained gains on Friday after the US Department of Agriculture reduced its forecast for US output but upped global production projections in the 2014-15 crop year. The most-active December cotton contract on ICE Futures US hit a session high of 65.50 cents following the USDA's monthly world supply and demand report, and was up 0.95 cent, or 1.5 percent, at 64.89, by 12:18 pm EDT (1618 GMT).
The following deals reported: 600 bales from Nawabshah at Rs 5200-5250, 2000 bales from Khairpur at Rs 5300-5350, 2000 bales from Upper Sindh at Rs 5300-5350, 600 bales from Hasilpur at Rs 5300-5325, 1000 bales from Arifwala at Rs 5300-5350, 1600 bales from Bahawalpur at Rs 5300-5350, 1000 bales from Mian Chano at Rs 5300-5350, 1000 bales from Chichawatni at Rs 5300-5350, 400 bales from Vehari at Rs 5300-5350, 400 bales from Gojra at Rs 5325-5350, 1200 bales from Haroonabad at Rs 5325-5350, 2000 bales from Mianwali at Rs 5325-5350, 1000 bales from Chistian at Rs 5325-5350, 400 bales from Duniyapur at Rs 5350, 800 bales from Layyah at Rs 5350, 600 bales from Mongi Bangla at Rs 5350, 400 bales from Bahawalnagar at Rs 5350, 1400 bales from Burewala at Rs 5350, 800 bales from Bakhar at Rs 5350, 1400 bales from Rajanpur at Rs 5350-5400 and 2000 bales from Khanewal at Rs 5350-5400, they added.
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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 10.10.2014
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37.324 Kgs 5,200 150 5,350 5,350 NIL
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Equivalent
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40 Kgs 5,573 160 5,733 5,733 NIL
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