Continued buying by mills and exporters boosted the rates to held firmness on the cotton market on Wednesday, dealers said. The official spot rate maintained overnight level at Rs 5,600, they added. In ready session, over 23,000 bales of cotton changed hands between Rs 5600 and Rs 5750, they said. In Sindh, prices of seed cotton went up with modest rise of Rs 50 to Rs 2600 and Rs 2650 and in Punjab prices were higher at Rs 2700 and Rs 2725, they said.
Market sources said that prices despite the dollar's fall in the money market, the buyers did not stop buying, instead they increased purchasing due to rains in Punjab. It seems that mills and spinners may continue purchasing in times to come, they said. Naseem Usman, cotton analyst, commenting on the present political situation in the country, said that traders were expecting some positive development to bring the back on track.
Reuters adds: Cotton futures jumped to a one-month high on Tuesday, as mills spied buying opportunities and traders covered short positions. The benchmark December cotton contract on ICE Futures US closed up 0.74 cent, or 1.1 percent, at 66.95 cents a lb after a flurry of late-session buying lifted prices as high as 66.95 cents. The following deals reported: 3200 bales of cotton from Shahdadpur at Rs 5600, 2400 bales from Tando Adam at Rs 5600, 1000 bales from Hyderabad at Rs 5600, 2400 bales from Mirpurkhas at Rs 5600, 800 bales from Kotri at Rs 5600, 3000 bales from Sanghar at Rs 5600, 600 bales from Vehari at Rs 5650-5660, 400 bales from Duniyapur at Rs 5650-5675, 200 bales from Pak Pattan at Rs 5660, 200 bales from Jahania at Rs 5675, 1200 bales from Burewala at Rs 5675-5700, 400 bales from Bahawal Nagar at Rs 5700, 200 bales from Chak Jhumra at Rs 5700, 200 bales from Faqirwali at Rs 5700, 1000 bales from Chistian at Rs 5700, 1000 bales from Mian Chano at Rs 5700, 1400 bales from Haroonabad at Rs 5700, 400 bales from Chinute at Rs 5700-5725 and 1200 bales from Khanewal at Rs 5750, 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 26.08.2014
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37.324 Kgs 5,600 155 5,750 5,750 Nil
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Equivalent
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40 Kgs 6,002 155 6,162 6,162 Nil
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