Cotton market: thin trade as ginners raise asking prices

Insipid business was seen on the cotton market on Monday as most of the ginners again raised asking prices as they have very little stock of lint cotton, dealers said. The official spot rate was unchanged at Rs 5300, dealers said. Nearly 1,000 bales of cotton sold at Rs 5650, they said.
The prices of seed cotton in Sindh were at Rs 1900 and Rs 2500 and in Punjab rates were at Rs 2200 and Rs 3000, they said.
Market sources said that trading activity came down in the absence of mills' buying interest as the ginners kept on the sidelines because of shortage of lint cotton, they said.
Cotton analyst, Naseem Usman said that prices are firm in the international market due to strong demand, local prices also moving in a tight range due to said reason.
Commenting on the fresh rains in Punjab side, he said that how much it will effect the next cotton production, it is before time to say something but it appears that rains will not play havoc in the cotton belt in times to come.
If petroleum prices go up in coming days, this factor may cause slight rise in the cotton rates, 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 25.04.2015

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37.324 Kgs         5,300       150        5,450        5,450            NIL

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Equivalent

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40 Kgs             5,680       160        5,840        5,840            NIL

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