Trading activity came down as mills and exporters, showed some hesitance in finalising new deals as rupee's ascent versus dollar likely to cause huge losses, dealers said on the cotton market on Saturday. The official spot rate sustained overnight rates at Rs 4,650, they added. In the ready session, about 15,000 bales of cotton changed hands between Rs 4000-5000, they said. In Sindh, prices were unchanged at Rs 1500 and Rs 2400, in Punjab prices were also inert at Rs 1600 and Rs 2500, they said.
Cotton analyst, Naseem Usman said that exporters were not so happy with the local currency's gain, because exports becoming costlier, on the other hand, imports are cheaper. This factor is giving an impression for decline demand for the local cotton, particularly low quality, he added. Cotton traders, mainly, exporters were suffering due to low return and falling demand, as well, other experts said.
Reuters adds: The NY cotton futures were higher on Friday. Besides, China imported 92,100 tonnes of cotton in November, down 46.8 percent on the same month last year, said trade website Cncotton.com, citing customs statistics. Chinese cotton imports for the first 11 months of the year dropped by 38.6 percent to 2.18 million tonnes, the data showed.
The following deals reported: 1400 bales of cotton from Saeedabad sold at Rs 4000-4200, 200 bales from Saleh Pat at Rs 4590, 800 bales from Vehari at Rs 4500, 200 bales from Bakhar at Rs 4600, 400 bales from Multan at Rs 4650, 4000 bales from Bahawalpur at Rs 4650-4750, 400 bales from Lodhran at Rs 4700, 800 bales from Haroonabad at Rs 4700, 400 bales from Hasilpur at Rs 4700, 400 bales from Yazman Mandi at Rs 4775, 800 bales from Layyah at Rs 4800-4850, 800 bales from Rahim Yar Khan at Rs 4850, 1000 bales from Sadiqabad at Rs 4850-4900, 1600 bales from Mianwali at Rs 4900-5000 and 1000 bales from Khanpur at Rs 5000, 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 12.12.2014
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37.324 Kgs 4,650 150 4,800 4,800 Nil
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Equivalent
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40 Kgs 4,983 160 5,143 5,143 Nil
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