Less buying interest pushed rates further down on the cotton market on Friday in the process of low activity, dealers said. The official spot rate extended overnight fall, losing more Rs 50 to Rs 6,650, they added. While, the prices of seed cotton from Sindh were unchanged at Rs 3100-3150 and in the Punjab rates were at Rs 3200 and Rs 3250, they said.
In the ready session, about 600 bales of cotton changed hands between Rs 6400-6550, they said. Sharp fall in the NY market and huge stock of unsold stock of yarn forcing the leading buyers to keep on the sidelines to keep away from further losses, dealers said. Commenting on the dullness in the market, cotton analyst, Naseem Usman said that nothing has changed due to disappointing situation in the world market, as a whole, China's absence is a very negative factor for the business circles. Reports showing that upcoming textile policy (2014-19) would revive the industry and promote value-addition to achieve one billion dollar growth in exports sector every year.
Reuters adds: Cotton futures in New York dropped to their lowest price since December 2012 on Thursday after disappointing weekly US government export data sparked heavy selling in another day of volatile trade. The benchmark December cotton contract on ICE Futures US finished down 0.63 cent, or 0.8 percent, at 74.63 cents a lb after dropping over 2 percent to 73.71 cents a lb.
US Agriculture Department (USDA) data showed that US exporters booked 27,700 bales of upland cotton in the week ended June 19. Exporters sold 3,600 running bales of the remaining current 2013/14 crop. The following deals were reported: 200 bales of cotton from Sanghar sold at Rs 6400 and 400 bales from Haroonabad at Rs 6550, 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 26.06.2014
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37.324 Kgs 6,700 155 6,805 6,855 -50
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Equivalent
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40 Kgs 7,127 155 6,282 7,335 -53
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