Prices of new crop moved up on the cotton market on Thursday in the process of modest trading, dealers said. The official spot rate drifted further lower by Rs 100 to Rs 4900, dealers said. Seed cotton prices in Sindh were at Rs 2450-2500 and in Punjab rates were at Rs 2500 and Rs 2600, they said. In the ready business, approximately, 1800 bales of cotton changed hands between Rs 4900 and Rs 5250, they said.
Market sources said that prices of new crop showed modest rise due to rising demand by mills and spinners.
Cotton analyst, Naseem Usman said that favourable weather in both Sindh and Punjab may help to achieve desired target for the next year.
He also said that increase in phutti arrivals may cause rise in demand by the mills and spinners.
Reuters adds: ICE cotton touched fresh 9-1/2-month highs on Wednesday before slipping into negative territory as investors booked profits after the prior day's rally on the government's lower-than-expected plantings estimate.
Cotton contracts for December settled down by 0.37 cent, or 0.54 percent, at 67.54 cents per pound. It traded within a range of 66.56 and 68 cents a pound.
The cash to second-month spread gained 1.89 cent to 0.77 cents per pound. Total futures market volume fell by 20,222 to 28,051 lots. Data showed total open interest gained 3,586 to 181,083 contracts in the previous session.
The following deals reported: 100 bales of cotton from Hyderabad sold at Rs 4900, 200 bales from Tando Mohammad Khan at Rs 4950, 400 bales from Kotri at Rs 4965-4975, 400 bales from Shahdadpur at Rs 4975-5000, 200 bales from Golarchi at Rs 5000 and same figure from Burewala at Rs 5250, dealers 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 01.07.2015
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37.324 Kgs 4,900 150 5,050 5,150 -100
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Equivalent
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40 Kgs 5,251 160 5,411 5,518 -107
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