Persistent demand for quality lint boosted the rates on the cotton market on Wednesday in the process of trading, dealers said. The official spot rate maintained overnight level at Rs 5000, dealers said. In the ready session, nearly 10,000 bales of cotton changed hands between Rs 4200 and Rs 5250, they said. The prices of seed cotton in Sindh were at Rs 1800 and Rs 2350 and in Punjab the rates of phutti were at Rs 2000 and Rs 2600, they said.
Commenting on the gradual rise in rates, cotton analyst, Naseem Usman said after the Pakistan Cotton Ginners Association (PCGA) arrival figures, buying rush for quality cotton increased by the buyers to meet export orders. Slight improvement in the supply of gas and electricity in the winter, particularly in Punjab encouraged textile exporters to keep their mills and factories operational, some other analysts said. They said that despite higher production at 14.7 million bales many buyers were looking active in covering the forward deals.
Reuters adds: ICE cotton fell to a two-week low on Tuesday and suffered its largest single-session loss in six weeks, as speculators who fuelled a rally over the past five weeks slowed down buying on indications that momentum has cooled. The most-active May cotton contract on ICE Futures US fell 1.22 cent, or 1.9 percent, to settle at 63.63 cents a lb, after dipping to 63.52 cents a lb, the lowest level since February 17. The following deals reported: 600 bales from Jhole sold at Rs 4200-4300, 200 bales from Mirpurkhas at Rs 4500, same number from Chistian at Rs 4700, 400 bales from Chichawatni at Rs 4875, 600 bales from Faquirwali at Rs 4885, 400 bales from Sahiwal at Rs 4900, 200 bales from Multan at the same rate, 2600 bales from Hasilpur at Rs 4900-5000, 400 bales from Bahawalpur at Rs 5000, 200 bales from Yazman Mandi at Rs 5100, 600 bales from Chani Goth at the same rate, 700 bales from Alipur at Rs 5150, 800 bales from Dera Gazi Khan at Rs 5200, 600 bales from Sadiqabad at the same rate, 1000 bales from Rahim Yar Khan at the same rate and 600 bales from Mianwali at Rs 5200-5250, 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 03.03.2015
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37.324 Kgs 5,000 150 5,150 5,150 NIL
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Equivalent
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40 Kgs 5,358 160 5,518 5,518 NIL
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