Subdued business was seen on the cotton market on Friday as the ginners did not take interest in selling lint cotton below the psychological level, dealers said. The official spot rate was unchanged at Rs 5300, dealers said. So, in the ready session, around 2,000 bales of cotton changed hands between Rs 4900 and Rs 5500 (conditional), they said.
The prices of seed cotton in Sindh were at Rs 1900 and Rs 2500 and in Punjab rates were at Rs 2200 and Rs 3000, they said.
Market sources said that firm trend in the world markets and delay in next crop giving a boost to the rates. The ginners, who have little quantity of lint cotton, trying to refrain from new deals in anticipation of high rates in the coming days, cotton analyst, Naseem Usman said.
Many spinners adopted a wait-and-see attitude, but some of them made urgent deals to meet their urgent demand, he added.
As a result of world recession, China's cotton imports dropped around 40 percent in March from the same month the year before, hit by strikes at US West Coast ports and as Beijing issues less import permits to mills.
Reuters adds: Cotton futures fell to their lowest levels in two weeks on Thursday after weekly US government export sales data showed a net cancellation in new sales, prompting investor selling and outweighing the supportive effect of a weaker US dollar.
The most active July cotton contract fell 0.42 cent, or 0.6 percent, to settle at 64.58 cents a lb, after falling as low as 63.83 cents a lb, its lowest since April 2. Front-month May cotton fell 0.58 cent, or 0.9 percent, to settle at 64.01 cents a lb.
The following deals reported: 1000 bales of cotton from Tando Adam sold at Rs 4900, 400 bales from Moro done at Rs 5500 (conditional) and same figure from Chincawatni finalised at Rs 5300, 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 16.04.2015
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37.324 Kgs 5,300 150 5,450 5,450 NIL
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Equivalent
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40 Kgs 5,680 160 5,840 5,840 NIL
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