Steadier trend was witnessed on the cotton market on Thursday in the process of improved business, dealers said. The official spot rate stabilised, showing no change in overnight price at Rs 6,900, they added. In the ready session, around 6000 bales of cotton done between Rs 5400 and 7300, dealers said.
Some brokers said that ginners were hoping for further rise in rates, but mills and spinners were not interested in paying above the psychological levels. Experts were of the opinion that exports of textile are on decline and on the other hand cost of production is increasing day by day, besides, power load shedding and less gas supply were dragging them into the uncertainties. Cotton analyst, Naseem Usman said due to weak economic condition of some exporting countries, textile exporters were in grip of unforeseen uncertainties.
Reuters adds: Cotton futures crawled to their first daily gain in nine sessions on Wednesday on expectations of a bullish weekly US government export report on Thursday. The most-active July cotton contract on ICE Futures US closed up 0.29 cent, or 0.3 percent, at 89.29 cents a lb. The benchmark contract retreated from session highs after meeting resistance past the key psychological 90-cent level, but clung report would show the recent price decline has stoked demand.
The following deals reported: 2440 bales of cotton from Mirpurkhas sold at Rs 5400, 1400 bales from Sanghar at Rs 6200, 400 bales from Chundco at Rs 6700, 200 bales from Bahawalpur at Rs 6600, 400 pales from Rahim Yar Khan at Rs 7000, 200 bales from Rajanpur at Rs 7100 and 200 bales from Shujaabad at Rs 7300 (credit), dealers 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 21.05.2014
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37.324 Kgs 6,900 155 7,055 7,055 Nil
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Equivalent
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40 Kgs 7,395 155 7,550 7,550 Nil
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