Panic buying by mills

Both mills and spinners indulged in panic buying of cotton amid rising fears of further increase in rates, dealers said. The official spot rate was higher by Rs 100 to Rs 8500, they added. Prices of seed cotton in Sindh were at Rs 3700-4000, in the Punjab seed cotton prices were at Rs 3700-4300 and in Balochistan, rates of seed cotton were at Rs 3800-4200, they said.
In ready session, approximately 35,000 bales of cotton changed hands between Rs 8200-8750, they said.
Market sources said that prices gained momentum on forward buying of cotton by the mills and spinners. In fact, continued increase in the rates of dollar and tight supply of lint cotton, propelled buyers to keep buying to refrain from future losses, they said. Cotton analyst, Naseem Usman said that rates may move up further in the coming days.
Besides, the Pakistan Central Cotton Committee (PCCC) had developed 53 new high yielding seed varieties for cultivation in order to enhance the output of the major cash crop of the country as the committee was also working on war footings to produce high quality seed varieties to boost the cotton production. To save from losses, cotton advisory has called upon the farmers to start picking of their cotton crop when 50 percent of bolls become fully matured, some experts said.
Besides this, bolls should be picked up from the lower part of the plant first and then move upwards gradually, they added.
Prices almost moved both ways in the international market, they said
The following deals reported: 1000 bales of cotton from Shahdadpur at Rs 8200/8250, 1000 bales from Tando Adam at Rs 8200/8250, 5000 bales from Nawabshah at Rs 8300/8400, 600 bales from Khanpur Meher at Rs 8700, 400 bales from Dherki at Rs 8700, 4000 bales from Khairpur at Rs 8500/8600, 800 bales from Fazilpur at Rs 8600/8750, 3600 bales from Rahim Yar Khan at Rs 8600/8700, 1200 bales from Sadiqabad at Rs 8675/8700, 1200 bales from Bahawalpur at Rs 8600/8700, 2800 bales from Fort Abbas at Rs 8600/8650, 400 bales from Jalalpur at Rs 8650, 600 bales from Liaquatpur at Rs 8650, 1600 bales from Rajanpur at Rs 8600/8650, 800 bales from Shujabad at Rs 8650, 800 bales from Ahmedpur East at Rs 8600, 200 bales from Ghazi Ghat at Rs 8600, 2600 bales from Mianwali at Rs 8600, 1600 bales from Yazman Mandi at Rs 8500/8600, 200 bales from Layyah at Rs 8450, 1400 bales from Vehari at Rs 8400, 200 bales from Chistian at Rs 8400, 1200 bales from Haroonabad at Rs 8375/8400, 1200 bales from Hasilpur at Rs 8350/8400 and 600 bales from Faqirwali at Rs 8375, 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 10.10.2018

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37.324 kg          8,500      160         8,660        8,560        + 100/-

Equivalent

40 kgs             9,109      171         9,280        9,173        + 107/-

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