Rates move up on depleting supply of seed cotton

Prices of phutti (seed cotton) moved higher on the cotton market on Thursday in the process of modest activity, dealers said. The official spot rate was up by Rs 50 to Rs 6850, they added. Prices of seed cotton in Sindh per 40 kg were higher by Rs 100 to Rs 2500-3200, in Punjab, rates followed same pattern, gaining Rs 100 to Rs 2500-3300, dealers said. In the ready session, over 3000 bales of cotton changed hands between Rs 6900-7000, dealers said.
Cotton Analyst, Naseem Usman said that falling stock of seed cotton pushed the rate higher and at the same time, the spinners were unhappy with the heap of unsold stock of yarn, particularly after import of Indian yarn As a result of protests by the local spinners, the government is planning to impose five percent duty on import of yarn from India to encourage the local spinners who were facing financial problems, brokers said. If the government imposes ban on import of yarn, local buyers may take interest in purchasing of yarn, they added.
Reuters adds: the NY cotton futures slipped during the slight fall in demand.
The following deals were reported: 600 bales from Dharki sold at Rs 7000, 1000 bales from Fazilpur at Rs 6900, 400 bales from Bahawalpur at Rs 6900, 400 bales from Burewala at Rs 6925, 400 bales from Kabirwala at Rs 7000 and 544 bales from Tunsha Sharif at Rs 6900, 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"

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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 05.03.2014

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37.324 Kgs        6,850       155        7,005        6,955             +50

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Equivalent

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40 Kgs            7,341       155        7,496        7,443             +53

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