Steadier trend persisted on the cotton market on Saturday as volume of business showed further improvement in the process of trading, dealers said. The official spot rate was unchanged at Rs 5,650 dealers said. In the Punjab, prices showed no change at Rs 3100 and Rs 3400, they said. In the ready business, around 6000 bales of cotton changed hands between Rs 4300-6000, they said.
Explaining the current position in the market, some brokers said that buyers of cotton showing interest in new deals, which helped rates to stay firm and it appeared that prices not fluctuate sharply in the times to come. Cotton analyst, Naseem Usman said that short supply, delay in fresh arrivals and unforeseen uncertainties about the weather impact on cotton standing crop in field, inducing spinners to make deals as early as possible.
Reuters adds: Cotton futures slipped on Friday to the lowest in nearly four weeks, pressured by a downturn in commodities markets amid a stronger dollar. The July cotton contract on ICE Futures US fell about 1.63 percent for the week. The natural fibre will trade in a narrow range, between 60 and 65 cents per lb, this year, Singapore-based trader Olam International, the world's second-largest cotton trader, said on Friday.
The front-month July cotton contract on ICE Futures US settled down 0.11 cent, or 0.18 percent, at 60.62 cents per lb. It traded within a range of 60.25, the lowest since April 18, and 61.04 cents a lb.
The following deals reported: 800 bales of cotton from Sanghar at Rs 4300, 200 bales from Shahdadpur at Rs 5000, 800 bales from Layyah at Rs 5350-6000, 1000 bales from Rahim Yar Khan at Rs 5400, same number from Jalalpur at Rs 5500, 800 bales from Shujabad at Rs 5500-5700, 200 bales from Sheher Sultan at Rs 5650, 400 bales from Fazilpur at Rs 5800 and 600 bales from Maroot at Rs 6000, 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 13-05-2016
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37.324 kg 5,650 135 5,785 5,785 NIL
Equivalent
40 kgs 6,055 145 6,200 6,200 NIL
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