A steady trend prevailed on the cotton market on Wednesday as mills indulged in forward buying ahead of Eid-ul-Azha, dealers said. The official spot rate was unchanged at Rs 6,500, dealers said. In Sindh, seed cotton prices gained Rs 50 to Rs 3200-3400, in Punjab Phutti rates were at Rs 3000-3400, per 40 kg, respectively, they said. In ready business, nearly 10,000 bales of cotton changed hands between Rs 6550 and Rs 6825, they said.
Market sources said that prices managed to hold present levels due to restricted selling by ginners and growers. Cotton supply is not enough to meet the demand by mills, they said. Supply is not begins in Punjab due to late sowing, they added. Cotton analyst, Naseem Usman said that as a whole, prices in the local market are firm following the track in the international market. If supply position not improves, rates of fine quality of cotton could go up in the coming days, he added.
Reuters adds: Cotton futures rose on Wednesday, snapping three straight sessions of losses, with speculators apparently wary of further selling the day before weekly export sales data from the US Department of Agriculture. The following deals were reported: 400 bales from Khadro at Rs 6550, same figure from Maqsooda at Rs 6550-6575, 1200 bales from Mirpurkhas at Rs 6550-6600, 1000 bales from Hyderabad, 2000 bales from Sanghar all done at the same rates, 1800 bales from Tando Adam at Rs 6550-6640, 2000 bales from Shahdadpur at Rs 6550-6600, 200 bales from Mongi Bangla at Rs 6750, 300 bales from Sahiwal at Rs 6800, 100 bales from Haroonabad, same number from Bahawal Nagar finalised at the same rate and 400 bales from Jhang at Rs 6825, 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 17.08.2016
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37.324 kg 6,500 135 6,635 6,635 NIL
Equivalent
40 kgs 6,966 145 7,111 7,111 NIL
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