Softness prevailed on the cotton market on Thursday as spot rate came down on comfortable supply of seed cotton, dealers said. The official spot rate dropped by Rs 50 to Rs 5,100, they added. In the ready session, over, 30,000 bales of cotton changed hands at Rs 5100-5300, they said. In Sindh, rates of seed cotton were firm at Rs 2000 and Rs 2500, in Punjab prices were unchanged at Rs 2400 and Rs 2650, they said.
According to the market sources, the Trading Corporation of Pakistan (TCP) is busy to start procurement process. Cotton analyst, Naseem Usman said that the seed cotton rates dropped by Rs 400 within a year due to better-than-expected production of cotton during the current year. As a whole, prices of cotton are coming down due to said reason, he said but the prices of fine quality of cotton may not fall in times to come, he added.
Locally, cotton arrivals from the current crop season reached 8.382 million bales by November 1, 2014, up nearly 10.20 percent from 7.606 million bales in the same period last year, the Pakistan Cotton Ginners Association (PCGA) said. Besides, reports showing that China will give farmers subsidies of up to 2,000 yuan per tonne for cotton harvested this year outside its top producing region of Xinjiang, the China Cotton Association said.
Reuters adds: ICE cotton fell in choppy trade on Wednesday, under pressure from the rolling of closely watched index funds and expectations that the US government will increase its projections for excess global inventories in a monthly forecast next week.
The most-active December cotton contract on ICE Futures US sank to a two-week low of 62.02 a lb before sharply paring losses to end down 0.09 cent, or 0.1 percent, at 62.71 cents a lb. Volumes were above average as traders rolled forward long positions from the spot December contract, which is due to expire in about a month.
The following deals reported: 6000 bales of cotton from Khairpur at Rs 5100-5125, 2000 bales from Upper Sindh at Rs 5100-5200, 400 bales from Vehari at Rs 5100, 400 bales from Ghazi Abbas at Rs 5100, 1200 bales from Hasilpur at Rs 5125, 600 bales from Bahawal Nagar at Rs 5125, 400 bales from Chistian at Rs 5125, 400 bales from Basti Malook at Rs 5125, 1200 bales from Haroonabad at Rs 5125-5175, 1000 bales from Faqirwali at Rs 5125-5150, 600 bales from Shujabad at Rs 5150, 400 bales from Lodhran at Rs 5150, 400 bales from Burewala at Rs 5200, 1000 bales from Khanewal at Rs 5200, 400 bales from Yazman Mandi at Rs 5200, 400 bales from Tonsa Sharif at Rs 5200, 3400 bales from Fazilpur at Rs 5200, 2000 bales from Rahim Yar Khan at Rs 5200-5250, 3000 bales from Rajanpur at Rs 5225-5250, 2400 bales from Alipur at Rs 5250, 1600 bales from Shadan Lund at Rs 5250, 1400 bales from Mianwali at Rs 5250 and 800 bales from Jalalpur at Rs 5300, they added.
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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 05.11.2014
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37.324 Kgs 5,100 150 5,250 5,300 -50
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Equivalent
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40 Kgs 5,466 160 5,626 5,679 -53
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