Cotton market: less buying interest pushes volume of business down

Less buying interest pushed the volume of business down on the cotton market on Saturday, dealers said. The official spot rate was unchanged at Rs 5900, dealers said. In Sindh, seed cotton prices were same at Rs 2500-3050, they said, in Punjab, Phutti rates were at Rs 2600-3200, as per 40 kg, they added. In ready business, over 25,000 bales changed hands between Rs 5475-6150, they said. Some brokers said that leading mills have covered their short-terms position. Cotton analyst, Naseem Usman said that the supply position is strong as size of arrivals improved with the passage of time.
He also said that prices may decline further after the Devali holidays. Other analysts said prices were soft locally, despite the fact that NY cotton futures and other global markets were gaining ground.
Reuters adds: Cotton futures rose for a third consecutive session on Friday on expectations that output of the natural fibre would be lower this year, supported also by a weaker US dollar. The December cotton contract on ICE Futures fell 2.5 percent in the week ended October 28.
The following deals reported: 1000 bales of cotton from Shahdadpur sold at Rs 5475-5550, same figure from Tando Adam at Rs 5500-5550, 600 bales from Panj Moro at Rs 5600, 2000 bales from Khairpur at Rs 5975-6025, same number from Salehpat at Rs 6000-6025, same figure from Rohri at the same price, 800 bales from Pano Aqil, 1000 bales from Dharki, 800 bales from Ghotki all down at the same rate, 1300 bales from Khanewal at Rs 6050-6100, 1885 bales from Shujabad at Rs 6050-6125, 400 bales from Chichawatni at Rs 6075, 800 bale from Faqirwali at Rs 6075-6100, 1600 bales from Alipur finalised at the same rate, 200 bales from Fazilpur at Rs 6100, 400 bales from Mianwali at the same rate, 1200 bales from Rahim Yar Khan at Rs 6100-6150, 1200 bales from Jalalpur at Rs 6125, 400 bales from Lodhran at Rs 6125-6150, same number from Bahawalpur, same figure from Ahmedpur all done at the same rate, 1200 bales from Fort Abbas at Rs 6150, 200 bales from Yazman Mandi and 400 bales from Sadiqabad all done at the same rate, 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 27.10.2016

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37.324 kg          5,900      135        6,035        6,035             NIL

Equivalent

40 kgs             6,323      145        6,468        6,468             NIL

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