Official spot rate moved higher on the cotton market on Wednesday amid slow trading as major trading centres were closed to mourn Tuesday's Peshawar tragedy, dealers said. The official spot rate picked up by Rs 50 to Rs 4,700, they added. In the ready session, about 16,000 bales of cotton changed hands between Rs 4650-4900, they said. In Sindh, prices were unchanged at Rs 1600 and Rs 2400, in Punjab prices also held the overnight levels at Rs 2000 and Rs 2600, they said.
Cotton analyst, Naseem Usman said that the whole nation was shocked over the Army Public School incident in Peshawar. So that many business centres remained closed, he said. Business volume was low as the spinners were purchasing fine quality, which helped the rates to hold present levels. In ready business, prices likely to go up in the coming days, in the meantime, the inferior quality may lose ground due to falling demand, other brokers said. They said that the Pakistan Cotton Ginners Association's (PCGA) fortnightly report for phutti arrivals is likely on Thursday, which expected to help market sentiment.
Reuters adds: Cotton futures fell the most in two weeks on Tuesday after once again encountering resistance at a key level, dragged down by light mill demand and weakness in the crude oil market that is driving a general exodus of cash from commodities. The most-active March cotton contract on ICE Futures US fell 0.87 cent, or 1.4 percent, to settle at 59.78 cents a lb, its first decline after three straight sessions of gains and its steepest drop since December 1.
The contract failed to break resistance at the 50-day moving average at just above 61 cents a lb after briefly piercing the level, but failing to remain above it, in each of the previous three sessions. The following deals reported: 600 bales from Bahawal Nagar at Rs 4650-4700, 1600 bales from Bahawalpur at Rs 4750-4800, 1000 bales from Ahmedpur at Rs 4750-4800, 1000 bales from Dera Ghazi Khan at Rs 4800-4850, 1000 bales from Alipur at Rs 4800-4850, 1000 bales from Layyah at Rs 4850, 1000 bales from Liaquatpur at Rs 4850-4950, 4000 bales from Khanpur at Rs 4850-5000, 2000 bales from Sadiqabad at Rs 4850-5000, 2000 bales from Rahim Yar Khan at Rs 4850-5000 and 1000 bales from Mianwali at Rs 4900, 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 16.12.2014
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37.324 Kgs 4,700 150 4,850 4,800 +50
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Equivalent
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40 Kgs 5,037 160 5,197 5,143 +54
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