Not much activity was witnessed on the cotton market on Monday as millers and spinners were sidelines due to less buying interest, dealers said. The official spot rate was unchanged at Rs 6,850, they added. Prices of seed cotton in Sindh per 40 kg were inert at Rs 2500-3200, in Punjab, rates also retained overnight levels at Rs 2500-3300, dealers said. In the ready session, around 1000 bales of cotton changed hands between Rs 6800-7000, dealers said.
Market sources said that a few buyers were in the arena to make deal at their psychological level. Cotton analyst, Naseem Usman said that it looks local buyers were fed up with the inactive market, most of them are short of fund as local yarn is still not in demand. Second major factor is sharp fall in the dollar's value versus the rupee, which may cause decline in the export earnings, other analysts said. Import of cotton yarn from India, pushed the demand of local stuff down, they said.
Reuters adds: China's state cotton stockpiler bought 113,360 tonnes of fibre last week, its lowest weekly volume since the buying season began, as the third and final year of a stockpiling scheme draws to a close, official statistics showed on Monday. Stockpiling by the world's top cotton buyer is a driver of global prices. China's buying for state reserves has driven up import demand by removing cotton from the domestic market and pushing up local prices. The following deals were reported: 200 bales from Karor Pakka sold at Rs 6800, 400 bales from Bahawalpur at Rs 7000 (conditional) and same figure from Kabirwala at Rs 7000 (conditional), 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 08.03.2014
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37.324 Kgs 6,850 155 7,005 7,005 NIL
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Equivalent
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40 Kgs 7,341 155 7,496 7,496 NIL
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