Prices showed slight gains on the cotton market on Tuesday in the process of modest trade activity, dealers said. The official spot rate was unchanged at Rs 6800, they said. In the ready session, 1600 bales of cotton changed hands between Rs 7000-7050, they said. Market sources said that new crop in sizeable quantity has started arriving in the market.
A good quantity of cotton has reached the markets but in the absence of incentives, the leading participants were not able to purchase cotton in huge quantity, other experts said. Cotton analysts, Naseem Usman said that some ginning factories will become functional before Eid-ul-fitr. However, other analysts said that sowing is also underway in some areas of Sindh and Punjab, whereas cotton growers were facing water shortage which hampering the sowing problem. Textile sector is facing a lot of problem due to lack of facilities by the government, experts said.
Adds Reuters: ICE cotton futures fell on Monday on a stronger dollar and favourable conditions for planting of the natural fibre. The most-active December cotton contract on ICE futures US settled down 0.51 cent, or 0.70 percent, at 72.61 cents per lb. It traded within a range of 72.43 and 73.28 cents a lb. The July cotton contract on ICE Futures US fell half a percent to 76.31 cents per lb. Prices earlier touched a more than three-week low of 76.28 cents per lb.
Total futures market volume rose by 983 to 28,739 lots. Data showed total open interest fell 2,766 to 240,680 contracts in the previous session. The following deals reported: 800 bales of cotton from Rahim Yar Khan finalised at Rs 7000-7020 and 800 bales from Yazman Mandi at Rs 7050, 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 1-1/16"
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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 05.06.2017
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37.324 kg 6,800 135 6,935 6,935 Nil
Equivalent
40 kgs 7,288 145 7,433 7,433 Nil
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