Most of the leading participants were on the sidelines amid announcement of budget for 2015-16, dealers said on Friday. The official spot rate was up by Rs 50 to Rs 5450, dealers said. In the ready session, over 2000 bales of cotton sold at Rs 5350 and 5600, they said. Cotton analyst, Naseem Usman said that small size of seed cotton started arriving at ginneries, so, the spinners were not taking interest in new deals, instead they were busy in watching budget speech just to know that the government is not going to impose sales tax on the raw cotton.
He said that cotton traders were already facing liquidity problem, this would increase their problem, instead of lessening. Some other brokers said that they were hoping for business-friendly budget but it looks that there is not so much for masses.
Reuters adds: ICE cotton futures rose to their highest in nearly a week on Thursday after a strong US government export sales report, before falling back to end the session negative ahead of the heart of the index fund roll period. July cotton on ICE Futures US settled down 0.12 cent on Thursday, a 0.2 percent drop, at 65.12 cents per pound. It traded within a range of 64.94 and 65.95 cents a pound.
US net export sales for the current crop reached 106,600 bales of cotton last week, up 74 percent from the prior four-week average, according to US Department of Agriculture data released on Thursday. This raised expectations that the USDA would boost its estimate for total US exports in the 2014/15 crop year from 10.7 million bales. Total futures market volume fell by 3,780 to 30,511 lots. Total open interest fell 1,615 to 186,060 contracts in the previous session. The following deals reported: 400 bales of cotton from Rahim Yar Khan at Rs 5350, 1400 bales from Alipur at Rs 5600 and 400 bales from Yazman Mandi at Rs 5590, 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 03.06.2015
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37.324 Kgs 5,400 150 5,550 5,550 NIL
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Equivalent
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40 Kgs 5,787 160 6,947 6,947 NIL
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