Millers and spinners under uncertainties, caused by dollar's sharp fall, preferred to be sidelined on the cotton market on Saturday in the process of trading, dealers said. The official spot rate held the overnight level at Rs 6,750, they added. Prices of seed cotton in Sindh and Punjab per 40 kg were unchanged at Rs 2300-3100, dealers said. In the ready session, around 500 bales of cotton changed hands between Rs 6600-6800, dealers said.
Some experts were of the view that dollar's steep decline created confusions among the traders, because the dollar has lost nearly 10 percent since 5 December 2013 the rupee was at Rs 108.60, and during the last couple of session, the rupee was trading at Rs 98 versus the dollar. We are keenly watching the rupee's direction next week against the dollar, as it was anticipated that the rupee may recover further ground, they said.
Cotton analyst, Naseem Usman said that the State Bank of Pakistan (SBP) kept the policy rates unchanged, now this was an important factor for the country, particularly for the business circle. As a whole, impact of both factors will appear next week, he added.
Reuters adds: Cotton futures advanced on Friday to a second straight weekly gain as mills spied buying opportunities in earlier price drops. The benchmark May cotton contract on ICE Futures US closed up 0.51 cent, or 0.6 percent, at 92.19 cents a lb.
Commodities markets steadied after a sharp sell-off earlier in the week seen on concerns over economic growth in China, the world's largest user of many raw materials. Investors have piled into commodities so far this year after the bellwether Thomson Reuters/Core Commodity CRB index saw three straight annual losses. The following deals reported as 200 bales of cotton from Haroonabad at Rs 6600, 100 bales from Fort Abbas at Rs 6650 and 200 bales from Haroonabad at Rs 6800, 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 14.03.2014
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37.324 Kgs 6,750 155 6,905 6,905 NIL
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Equivalent
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40 Kgs 7,234 155 7,389 7,389 NIL
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