Panic selling by ginners pushed the rates sharply down on the cotton market on Wednesday in the process of trading activity, dealers said. The official spot rate fell sharply by Rs 400 to Rs 8300, they added. Prices of seed cotton in Sindh and the Punjab were at Rs 3500-3800, they said. In Balochistan, prices of seed cotton were also came under pressure, losing Rs 300 to Rs 3700-4000, they said.
In ready session, around 13,000 bales of cotton finalised between Rs 8200-8900, they said. Market sources said that in a surprising way cotton prices fell sharply. Yarn prices also dropped sharply, they said. Cotton analyst, Naseem Usman said that exports of yarn dropped sharply on the buying interest.
He attributed the other reason of declining rates of cotton to uncertainty in the value of the dollar versus the rupee. So, the ginners preferred to sell out cotton at present levels to keep away from future losses, other analysts said. Reuters adds: Cotton prices were down in the international markets. Following deals reported: 1400 bales of cotton from Shahdadpur at Rs 8800, 1800 bales from Tando Adam sold at the same amount, 600 bales from Mirpurkhas at Rs 8200-8350, 1200 bales from Sanghar at Rs 8200-8400, 600 bales from Shahpur Chakar at Rs 8300-8400, 800 bales from Hyderabad at Rs 8200-8400, 400 bales from Khadro at Rs 8350-8400, 400 bales from Nawabshah at Rs 8400, 400 bales from Masoodo Rind at Rs 8300-8400, 400 bales from Burewala at Rs 8790-8900, 600 bales from Chichawatni at Rs 8675-8900, 400 bales from Gojra at Rs 8690-8900, 200 bales from Hasilpur at Rs 8800, 600 bales from Haroonabad at Rs 8500-8700, 400 bales from Sahiwal at Rs 8500, 200 bales from Samandri at Rs 8900 and 200 bales from Vehari at Rs 8700, they added.
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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 13-08-2018
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37.324 kg 8,300 160 8,460 8,860 - 400/-
Equivalent
40 kgs 8,895 171 9,066 9,495 - 429/-
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