An upward trend prevailed on the cotton market on Tuesday as mills and spinners showed interest in forward buying to cover their need, dealers said. The official spot rate was higher by Rs 50 to Rs 5350, dealers said. Over, 5,000 bales of cotton sold between Rs 4125 and 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. Some exerts said that depleting stocks of fine quality is the basic factor behind the fresh increase in the rates. Confusions about the late sowing are also a reason, which is propelling buyers to continue purchasing of cotton.
Cotton analyst, Naseem Usman said that prices stabilised after the news that Indian cotton production may be short of target. Cotton futures hit their highest levels in more than seven months on Monday, boosted by strong sales of US cotton that have attracted speculative buying, before turning lower after commercial players took advantage of the high prices to sell. "(The) trade came in and sold the market at day's end as soon as they saw the buying dry up," said Avery Putter, senior options broker at Sweet Futures in New Jersey.
Cotton contracts for July settled down by 0.11 cent on Monday, a 0.2 percent loss, at 66.23 cents per pound. It traded within a range of 65.88 and 67.50 cents a pound, the highest level for the second-month contract since September 15, 2014. The following deals reported: 400 bales of cotton from Mirpurkhas at Rs 4125, same figure from same station sold at Rs 4600, same number from same station at Rs 5000, 6000 bales from same station at Rs 5125, 400 bales from Lodhran at Rs 4850, 200 bales from Tiba Sultanpur at Rs 5000, 400 bales from Vehari at the same rate, 4000 bales from Karoor Pakka at Rs 5300, 200 bales from Multan at Rs 5350, 500 bales from Rahim Yar Khan at Rs 5425, 200 bales from Kasoowal at Rs 5600, 400 bales from Alipur at the same rate and 1000 bales from Khanpur at Rs 5650, 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 27.04.2015
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37.324 Kgs 5,350 150 5,500 5,450 +50
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Equivalent
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40 Kgs 5,734 160 5,894 5,840 +54
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