The trade activity improved on the cotton market on Tuesday as spinners made some fresh deals on lower prices, dealers said. The official spot rate was unchanged at Rs 5,200, dealers said. In Sindh, seed cotton prices were at Rs 2000-2200, and in Punjab prices at Rs 2500 and Rs 2900, they said.
In the ready business, as a result of slight improvement in the daily intake, over 3000 bales of cotton changed hands between Rs 4700 and Rs 5400, they said.
According to the market sources, needy spinners came back to finalise deals due to lower rates. Rise in the cotton futures could be another factor behind the increase in fresh buying by mills and spinners, they said.
Reports of delay in early sowing of cotton in Punjab owing to recent rains was causing a worry for spinners but depressed world market and domestic issues continued to bog down the spinning industry.
Reuters adds: cotton futures posted its biggest daily gain since early December on Monday, as technical strength triggered short-covering.
Speculators had increased their net short position in cotton by 9,673 lots to 36,537 lots in the week ended March 8, as they lifted their bearish bet in cotton to the biggest in nearly a decade, government data after market close on Friday showed.
The front-month May contract on ICE Futures US settled up 1.14 cent, or 1.99 percent at 58.29 cents per lb, after hitting a high of 58.37 cents.
The following deals finalised: 400 bales of cotton from Mirpur Mathelo sold at Rs 5300, same number from Khanpur Mehar at the same price, 600 bales from Layyah at Rs 4750, 400 bales from Burewala at Rs 5350, 1000 bales from Rahim Yar Khan at Rs 5400, 400 bales from Faqirwali at Rs 5400 and 200 bales from Fort Abbas at Rs 5200, 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 14-03-2016
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37.324 kg 5,200 135 5,335 5,335 NIL
Equivalent
40 kgs 5,573 145 5,718 5,718 NIL
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