Trading activity fell on the cotton market on Saturday as buyers are still under pressure owing the expected ban on cotton export by the county and India as well, dealers said. The official spot rate was unchanged at Rs 3875, brokers said. In the ready business activity fell slightly as nearly 23,000 bales of cotton changed hands between Rs 3775-3950.
Phutti prices fell modestly in Sindh and the Punjab at Rs 1900-1925, they said. Some brokers said that business activity slowed down slightly due to rumours that the exporters may face ban on exports of cotton in both India and Pakistan, they added.
Other matter is that cotton importing countries are likely to face hard time as a result of short crop in the US and China, they said. The local manufacturers may try to cover their needs for long staple cotton from the locally due to higher rates in the international markets, they said. According to a report, the cotton production in China has been hit by poor weather.
It will not be surprising to see a cut of 500,000 to 1.0 million bales in the estimate of Chinese cotton production, plus increased consumption and imports. On Friday, the NY cotton futures closed lower on investor sales and spread trade as most players were sidelined waiting for release of a government crop report and options expiration next week, brokers said.
The December cotton contract retreated 0.87 cent to settle at 66.54 cents per lb, trading from 66.47 to 67.82 cents. December contract volume reached 14,314 lots at 2:48 pm EST (1948 GMT). March cotton fell 0.66 cent to close at 70.33 cents, trading between 70.25 and 71.49 cents.
The following deals were reported: 3000 bales of cotton from Shahdadpur sold at Rs 3800, 2000 bales from Tando Adam at Rs 3800, 1500 bales from Sanghar at Rs 3775-3850, 1000 bales from Mirpurkhas at Rs 3800, 2000 bales from Khan Pur at Rs 3850, 2000 bales from upper Sindh at Rs 3900, 600 bales from Dera Gazi Khan at Rs 3950, 1000 bales Rajan Pur at Rs 3950, 1600 bales from Fazil Pur at Rs 3950, 1000 bales from Khan Pur at Rs 3925, 400 bales from Liaquat Pur at Rs 3900-3925, 1400 bales from Rahim Yar Khan at Rs 3900-3925, 400 bales from Bahawal pur at Rs 3900, 400 bales from Layyah at Rs 3900, 600 bales from Sadiqabad at Rs 3850-3900, 400 bales from Malcy at Rs 3850, 400 bales from Caroor Packa at Rs 3825, 400 bales from Shahanlund 3900 and 400 bales from Bahawalpur at Rs 3900.
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The KCA Official Spot Rate for Local Dealings in Pak Rupees
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FOR BASE GRADE 3 STAPLE LENGTH 1-1/32"
MICRONAIRE VALUE BETWEEN 3.8 TO 4.9 NCL
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Rate Ex-Gin Upcountry Spot Rate Ex-Karachi
for Price Sales Tax @ 15%
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37.324 Kgs 3,875.00 100 3,975.00
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Equivalent
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40 Kgs 4,153.00 100 4,253.00
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