Seed cotton prices drifted lower on the cotton market on Thursday in the process of sluggish trading, dealers said. The official spot rate was unchanged at Rs 4,950, dealers said. In the ready session, over 11,000 bales of cotton changed hands between Rs 3900 and Rs 5100, they said. The seed cotton in Sindh was available at Rs 1800 while the fine type was down by Rs 50 to Rs 2350, in Punjab rate of low type was inert at Rs 2000 but the good quality was lower by Rs 50 to Rs 2650, they said.
According to the market sources, the mills, spinners and particularly exporters were sidelines in the absence of fresh leads.
Cotton analyst, Naseem Usman said that local exporters and mills were expecting to win orders from the European Union (EU). The textile exhibition stared today in Frankfurt, Germany.
In the meantime, trading activity is still depressed as leading buyers adopted wait-and-see attitudes, he said and adding that the Pakistan Cotton Ginners Association (PCGA) fortnightly figures may be above 14 million bales.
Reuters adds: ICE cotton fell to a 7-1/2 week low in heavy trade on Wednesday as fears of deflation prompted investors to exit long positions and sell-stops triggered at two key support levels exaggerated the session's losses. The most-active front-month March cotton contract on ICE Futures US fell 1.17 cents, or 1.9 percent, to settle at 58.98 cents a lb, its largest single-session loss since December 31.
Prices fell as low as 58.66 cents a lb on the session, the lowest since November 21, after hitting automatic sell-stop orders below the prior session's low at 59.54 cents a lb, traders said.
The following deals reported: 400 bales from Sanghar at Rs 3900, 600 bales from Shahdadpur at the same rate, 1000 bales from Tharo Shah at Rs 4575, 3000 bales from Rohri at Rs 4900, 100 bales from Mian Chano at Rs 4400, 200 bales from Basti Malook at Rs 4850, 600 bales from Burewala at Rs 4900-5025, 200 bales from Jalalpur at Rs 4925, 600 bales from Haroonabad at Rs 4925, 400 bales of cotton form Lodhran at Rs 5075, same number from Dera Gazi Khan at Rs 5100, 1000 bales from Liaquatpur, same figure from Khanpur and same number from Rahim Yar Khan at the same rate, 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 14.01.2015
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37.324 Kgs 4,950 150 5,100 5,100 NIL
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Equivalent
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40 Kgs 5,305 160 5,465 5,465 NIL
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