Unavailability of quality lint, propelled mills and spinners to keep on the sidelines on the cotton market on Wednesday. The official spot rate held the week-end level at Rs 5000, dealers said. In the ready session, over 5,000 bales of cotton changed hands between Rs 4700 and Rs 5200, they said.
The prices of seed cotton in Sindh were at Rs 1900 and Rs 2350 and in Punjab rates were at Rs 2000 and Rs 2650, they said. Some brokers said that despite the rising prices, mills and spinners were busy to build up their stock. Other analysts said that some of them were under pressure due to delay in arrival of next crop. Cotton analyst, Naseem Usman said prolonged cold weather is delaying sowing of new cotton crop, next cotton crop is likely to be late by three to four weeks.
Thanks to the slight improvement in the gas and power supply which increased consumption by the textile industries, but on the other hand, he said that this factor is putting pressure on the lint prices.
Adds Reuters: ICE May cotton extended earlier losses and hit a more than one-month low after the US government raised its forecast for global inventories at the end of the 2014/15 crop year in its monthly report on Tuesday. The most active May cotton contract on ICE Futures US was down 1.06 cents, or 1.7 percent, at 61.19 cents a lb by 12:30 pm EST (1630 GMT), the session low and the lowest level for the May contract since February 6.
The following deals reported: 700 bales of cotton from Tiba Sultanpur at Rs 4700, 400 bales from Bahawalpur at the same rate, same figure from Chichawatni at Rs 4900, same number from Faqirwali at Rs 4950, 500 bales from Burewala at Rs 4950-5115, 800 bales from Khanewal at Rs 5000-5100, 400 bales from Ahmedpur at Rs 5175, 1600 bales from Yazman Mandi at Rs 5170-5200, 400 bales from Sadiqabad at Rs 5200 and 600 bales from Rahim Yar Khan at the same rate, 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 10.03.2015
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37.324 Kgs 5,000 150 5,150 5,150 NIL
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Equivalent
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40 Kgs 5,358 160 5,518 5,518 NIL
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