Not much activity was witnessed on the cotton market on Saturday as mills and spinners were on the sidelines in the absence of basic requirements for doing business in the country, dealers said. The official spot rate was inert at Rs 6,600, they said. Rates of seed cotton in both Sindh and Punjab were at Rs 1600 and Rs 2300, they said. Only one deal of 200 bales from Yazman Madi sold at Rs 6600, they said.
Commenting on the present situation, cotton analyst, Naseem Usman said that owing to panicky situation in the country, business sentiments hurt badly because liquidity crunch in traders and fall in the yarn demand in the international market giving tough time to the textile industry. Trading activity may improve after elections because performance with demand on the outcome, other experts said.
According to the Reuters, ICE cotton rose on Friday, after finding technical support and as limited mill buying buoyed prices, though the gains were not enough to prevent fiber from registering a fourth straight weekly loss. The most active July cotton contract on ICE Futures US gained 1.02 cent, or 1.2 percent, to settle at 84.25 cents per pound. A fall to technical support in the range of 82 cents to 82.50 cents earlier this week prompted buying, dealers said. The day's gains came even as the rest of the Thomson Reuters-Jefferies CRB index, a global commodities benchmark, closed lower.
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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"
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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 26.04.2013
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37.324 Kgs 6,600 155 6,755 6,755 NIL
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Equivalent
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40 Kgs 7,073 155 7,228 7,228 NIL
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