Steadier trend prevailed on the cotton market on Monday as prices depicted firmness due to slow supplies, dealers said. The official spot rate was up by Rs 50 to Rs 5,100, they added. In the ready session, over 9,000 bales of cotton changed hands between Rs 5050 and Rs 5400, they said. In Sindh, rates were higher by Rs 100 to Rs 2450 and Rs 2550, in Punjab prices were up by Rs 200 to Rs 2400 and Rs 2550, they said.
Some analysts said that the seed cotton prices fell sharply during the last sessions, but now rates have started moving up with gradual pace. Supply of phutti was tight, pushing prices up as buyers were purchasing ahead of Eid-ul-Azha holidays. Cotton analyst, Naseem Usman said that slow arrivals may help the prices to resist sharp losses.
The other leading factor is firm trend in China and India, he said and adding that India's textile apparel exports to rise by 10 percent this year. Reports are appearing that India to topple China as the world's top cotton grower this year.
Reuters adds: India's cotton and apparel exports are set to climb by around 10 percent this year as higher wages, political instability and concerns about workplace conditions in other producing markets steer international buyers toward Indian exporters, industry officials said. The rise in textile shipments from India - currently around 4.5 percent of world trade - may eat into top exporter China's 36 percent share of the market and will be a boon for Indian textile merchants keen to exploit rising demand stemming from weak cotton prices and global economic growth.
The following deals reported: 800 bales of cotton from Sanghar at Rs 5050-5100, 400 bales from Shahdadpur at Rs 5100, 200 bales from Bandhi at Rs 5200, 200 bales from Panj Moro at Rs 5250, 1000 bales from Khairpur at Rs 5300, 1000 bales from Upper Sindh at Rs 5300, 1200 bales from Hasilpur at Rs 5300, 400 bales from Multan at the same rate, 600 bales from Burewala at Rs 5300, 800 bales from Haroonabad at Rs 5325, 1400 bales from Chichawatni at Rs 5325, 400 bales from Kasowal at Rs 5325, 400 bales from Mian Chano at Rs 5350, 400 bales from Mianwali at Rs 5375 and 400 bales from Khanewal at Rs 5400, they said.
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The KCA Official Spot Rate for Local Dealings in Pakistan 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 27.09.2014
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37.324 Kgs 5,100 150 5,250 5,200 +50
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Equivalent
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40 Kgs 5,466 160 5,626 5,572 +54
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