Rates held firmness on short supply of quality lint on the cotton market on Thursday amid hectic trading activity, dealers said. The official spot rate was unchanged at Rs 5,450, dealers said. In Sindh, prices of seed cotton were at Rs 2000 and Rs 3000 and in the Punjab, rates were at Rs 2200 and Rs 3100, they said. In the ready business, around 16000 bales of cotton changed hands between Rs 5315 and Rs 5700, they said.
Some brokers observed that trading activity picked up despite short supply of fine quality Cotton analyst, Naseem Usman said that most of the mills were interested in purchasing of best quality which is in short supply. In fact demand is originating from needy mills, he said and adding that to compete the international market the country is importing cotton from India. If the tax and duty was waived on the import of cotton from India then it would be detrimental to local growers and ginners whose 1.5 million bales are lying in unsold stock.
During the last sessions, the cotton growers facing tough time due to fall in rates, he said and adding that the large inventory held by China is depressing cotton prices the world over
Reuters adds: Cotton futures fell for the third straight session on Wednesday to touch their lowest level in nearly four months, bucking an overall positive trend across commodities as investors remained concerned about a potential auction of China's massive stockpile. March cotton on ICE Futures US settled down 0.55 cent, or 0.90 percent, at 60.86 cents per lb, after falling as low as 60.7 cents a lb, the lowest level since October 5, 2015.
Total futures market volume fell by 8,550 to 25,890 lots. Data showed total open interest gained 413 to 193,281 contracts in the previous session. The following deals finalised: 400 bales of cotton from Ghambat at Rs 5315, same figure from Hohri at Rs 5425, same figure from Yazman Mandi at Rs 5375, equal number from Khanewal at Rs 5400, 1600 bales from Mianwali at Rs 5500, 4000 bales from Rahim Yar Khan at Rs 5650-5700, same figure from Sadiqabad at Rs 5650-5700, 2000 bales from Khanpur at Rs 5700 and 1900 bales from Alipur at the same rate, 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 27-01-2016
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37.324 kg 5,450 135 5,585 5,585 NIL
Equivalent
40 kgs 5,841 145 5,986 5,986 NIL
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