Trading activity improved further on the cotton market on Friday mainly because of continued downward trend in prices, dealers said. The official spot rate continued to fall, losing to Rs 100 to Rs 5250, they added. In ready session, around 15000 bales of cotton changed hands between Rs 5200-5400, they said. Prices of seed cotton in Sindh of low type shed Rs 50 to Rs 2450 while the best variety was unchanged at Rs 2550, and in Punjab prices depicted no change at Rs 2500-2550, they said.
According to the market sources, most of spinners were on the sidelines because no improvement was seen in the yarn demand, resulting they were facing financial problem.
Mills were in the ring to make new deals as much as they can due to declining trend in the rate, cotton analyst, Naseem Usman said. Besides, the growers, who were under pressure because of lower rates, are demanding of the government to fix minimum prices at Rs 3,200 per 40kg, experts said.
Reuters adds: US cotton futures ended slightly lower in quiet trade, as broad-based losses in agricultural commodities and equities dampened demand expectations for investors in the fiber market. The most-active December cotton contract on ICE Futures US settled down 0.33 cent at 64.02 cents a lb, retreating after rising to a one-week high at 65.08 cents. Trading volume in cotton futures was about 15 percent below its 30-day average, preliminary Reuters data showed.
The following deals reported: 1000 bales from Kotri at Rs 5200-5300, 2000 bales from Mirpurkhas at Rs 5200-5300, 2000 bales from Sanghar at Rs 5200/5300, 800 bales from Hyderabad at Rs 5250/5300, 2000 bales from Shahdadpur at Rs 5200/5300, 1400 bales from Tando Adam at Rs 5250/5350, 800 bales from Hasilpur at Rs 5350, 1000 bales from Bahawalpur at Rs 5350, 800 bales from Gojra at Rs 5350, 600 bales from Vehari at Rs 5350, 800 bales from Chichawatni at Rs 5350, 400 bales from Bahawalnagar at Rs 5350 and 1400 bales from Burewala at Rs 5350/5400, 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 07.08.2014
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37.324 Kgs 5,250 155 5,400 5,500 -100
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Equivalent
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40 Kgs 5,626 155 5,786 5,894 -108
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