Firmness prevailed on the cotton market on Thursday as some needy buyers made buying to meet the near-term requirements, dealers said. The official spot rates were unchanged at Rs 4,400, they said. In the ready business approximately 20,000 bales of cotton changed hands between Rs 4300-4500, they said. Phutti prices in Sindh and Punjab were same at Rs 2150-2300, they added.
No big change was seen on the present outlook as mills were making deals following the expectations of fall in the rates, they said. Some analysts explaining the less interest of mills to latest move by the government to monitor the exports of yarn. They said that now it seems that the game is now in the hand of ginners whether to hold or sell the lint and cotton yarn around the current level to keep themselves in risk-free regime, because, phutti arriving is showing progress with the passage of time.
They observed that prices went up sharply due to strong demand by the foreign importers, but for the last two sessions after the government decision to limit exports of cotton yarn to ensure supplies to local ancillary industry at competitive rates.
They said that since then, activity came down as the leading spinners stayed on the sidelines to have an overview of the likely impact on the lint prices. They said that the intervention by the government in an effort to check the surging prices of lint and yarn caused big concern in the cotton trade. The interesting thing that the may not pick up until the government's decision on yarn exports not cleared, experts said.
In the meantime, no one could deny the fact that global cotton outlook is uncertain despite reports of short crop in the major producing countries, specially China, which said to be main on the list of exports and may be a big factor behind the sharp rise during the month of November, they added.
Besides, to boost textile industry, the Federal Minister for Textile Industry Rana Farooq has asked the textile units to get themselves registered for availing the benefits offered in the textile policy. Additionally, so the textile industry to upgrade itself and meet the growing challenges of changing world. On Wednesday, the NY cotton futures ended higher on Wednesday on some expectations of slightly lower production and better demand ahead of a closely watched US Department of Agriculture (USDA) crop report.
The benchmark March cotton contract settled 0.21 cent higher at 74.42 cents a lb, after trading from 73.30 to 74.50 cents. Mike Stevens, an analyst for Louisiana-based broker SFS Futures, said that the March contract was stuck in a range between 73 and 75 cents a lb. Volume in the March contract reached 10,038 lots by 2:29 pm EST (1929 GMT), versus the 5,360 lots seen late on Friday. Total cotton volume on Monday hit 10,910 lots, up from the prior tally of 8,071 lots, ICE Futures US said.
The following deals reported as some 1200 bales from Mirpurkhas at Rs 4300-4400, 2000 bales from Shahdadpjur at Rs 4350-4400, 1000 bales from Sanghar at Rs 4300-4325, 1000 bales from Khair Pur 4400, 2000 bales from Upper Sindh at Rs 4500, 1000 bales from Haroonabad 4380-4400, 1700 bales from Burewala 4340-4375, 700 bales from Murid wala at Rs 4400, 1400 bales from Rahimyar khan at Rs 4500, 1200 bales from Sadiqabad at Rs 4500, 600 bales from Dera Gazi Khan at Rs 4450, 1000 bales from Rajanpur at Rs 4500, 1000 bales from Fazil pur at Rs 4500, 1200 bales from Ahmed pur at Rs 4450, 1600 bales from Bahawal Pur at Rs 4450 and 600 bales from Vehari at Rs 4400, they said.
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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 4,400.00 100 4,500.00
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Equivalent
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40 Kgs 4,715.00 100 4,815.00
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