Cotton prices sustained firm posture on the local market on Wednesday after arrival of the Pakistan Cotton Ginners Association (PCGA) fortnightly report, dealers said. The official spot rate was higher by Rs 200 to Rs 7800, they said. In ready session, over 13,000 bales of cotton changed hands between Rs 8000-8100, they said. A deal of 2000 bales of cotton from Khanpur done at Rs 8100, they said.
In Sindh, seed cotton prices were at Rs 2900-3600, and in Punjab rates were at Rs 2900-3650, as per 40 kg, they said. Some brokers said that tight supply position helping rates to move up, in the meantime, falling trend in the international market, indicating that rates may keep present levels in the coming days.
Cotton analyst, Naseem Usman also said that during the last sessions, prices in the local markets touched high levels due to shortage of lint cotton, so further sharp rise in rates look some difficult due to said reason. The PCGA issued it's fortnightly arrival report, showing at 11.1 million bales till 1st January 2018.
The ginners may lower asking prices due to continued decline in the world markets, particularly in India, analysts said. Adds Reuters: ICE cotton futures slid nearly 1.5 percent on Tuesday in their biggest one-day percentage loss in over two months, weighed down by profit-taking.
The most active ICE cotton contract for March expiry settled down 1.13 cent at 77.5 cents per lb. It traded within a range of 77.3 and 79.29 cents a lb. The contract fell 1.44 percent for its biggest one-day percentage loss since October 26. The International Cotton Advisory Committee (ICAC) lowered its cotton inventory forecast for the 2018/19 crop year. Total futures market volume rose by 9,758 to 30,520 lots.
The following deals reported: 200 bales from Ghotki at Rs 8000, 2200 bales from Kot Sabzal at Rs 8000/8050, 600 bales from Liaquatpur at Rs 8000, 2600 bales from Khanpur at Rs 8000/8100, 5600 bales from Rahim Yar Khan at Rs 8000, 400 bales from Mian Channu at Rs 8000, 1000 bales from Rajanpur at Rs 8000 and 400 bales from D.G. Khan at Rs 8000, 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 1-1/16"
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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 02.01.2018
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37.324 kg 7,800 145 7,945 7,745 + 200/-
Equivalent
40 kgs 8,359 155 8,514 8,300 + 214/-
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