Prices fell modestly on the cotton market on Saturday as supply side was against the strong demand, dealers said. The official spot rate was down by Rs 50 to Rs 4,900, dealers said. In the ready session, business was subdued as a result of comfortable supply, so, nearly, 4,000 bales of cotton changed hands between Rs 4700 and Rs 5050, they said.
The seed cotton rates in Sindh were at Rs 2000 and Rs 2350, in the Punjab prices were at Rs 2200 and Rs 2650, they said. Market sources said that local buyers were importing cotton from India at the cheaper as compare to the domestic prices. Indian Imported cotton is creating a problem for the local cotton yarn sellers.
Cotton analyst, Naseem Usman said that due to an easy availability of Indian cotton, Chinese are also importing Indian cotton, as a result, local exporters were losing Chinese market. He also said that on 19th the Federal Cotton Committee (FCC) to estimate the cotton production for 2015-16 to analyse the situation in times to come.
Reuters adds: ICE cotton gained on Wednesday, receiving a boost from early drops in the dollar and gains in crude oil, as speculators continued to open long positions in the May contract. The most-active May cotton contract on ICE Futures US gained 0.51 cent, or 0.8 percent, to settle at 63.32 cents a lb. The contract ended the week up 2.7 percent for its third consecutive weekly gain. Front-month March cotton gained 0.22 cent, or 0.4 percent, to settle at 62.70 cents a lb.
The following deals reported: 400 bales of cotton from Halani at Rs 5000, same figure from Rohri at Rs 5050, 600 bales from Vehari at Rs 4700-4800, 400 bales from Chichawatni at Rs 4750, 200 bales from Multan at Rs 4850, 800 bales from Duniyapur at Rs 4900, 200 bales from Alipur at Rs 5000 and 823 bales from Dera Ghazi Khan at Rs 5050, 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 13.02.2015
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37.324 Kgs 4,900 150 5,050 5,100 -50
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Equivalent
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40 Kgs 5,251 160 5,411 5,465 -54
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