Main participants were sidelined on the cotton market on Tuesday as phutti arrivals are slow as a result of stuck up in picking operation, dealers said. The official spot rate was down by Rs 300 to Rs 6,300, they added. While, the prices of seed cotton from Sindh at Rs 3300 and Rs 3350, 3175 and in the Punjab rates were at Rs 3300 and Rs 3350, they said. In the ready session, about 600 bales of cotton at Rs 6350, they said.
Cotton analyst, Naseem Usman said that wind fall is continued in the interior Sindh, which caused a sharp fall in picking operation. If monsoon rains started in Sindh, this factor may not be beneficial for the standing crop, other brokers said. Besides, exports of textile and closing products witnessed an increase of 5.96 percent during to the out-going fiscal year, mainly owing to a slight rise in export of value-added products.
Reuters adds: cotton futures in New York extended losses on Monday after the US government raised its outlook for US cotton plantings this year above market expectations. The most-active December cotton contract on ICE Futures US fell 0.89 cent, or 1.2 percent, at 73.96 cents a lb by 12:20 pm EDT (1620 GMT). The US Agriculture Department (USDA) on Monday pegged 2014 US cotton plantings at 11.37 million acres, up from a March outlook of 11.10 million acres. The following deals were reported: 200 bales of cotton from Mirpirkhas sold at Rs 6350, same figure from Nooriabad and same figure from Kotri at the same rate, 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 30.06.2014
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37.324 Kgs 6,300 155 6,455 6,755 -300
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Equivalent
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40 Kgs 6,752 155 6,905 7,228 -321
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