Prices drifted lower on the cotton market on Thursday as some ginning factories have started operation partially, dealers said. The official spot rate was down by Rs 50 to Rs 5450, dealers said. In the ready session, some 4000 bales of cotton changed hands between Rs 5375 and Rs 5575, they said. Cotton analyst, Naseem Usman said that prices as ginning factories in Matiari and Khanewal have started operation partially, the weather is favourable so, seed cotton of new season have stared arriving at factories.
Some of the leading experts said that business is slow as buyers were conspicuous by their absence, it's a fact that budget for 2015-16 has failed to bring any relief for the businessmen or investors. Millers and spinners moved forward to make deals to cover their immediate needs, they said. Reports showing that cotton acreage in top grower India is likely to drop by the most in over a decade this year, as plunging prices and fears of a drought prompt farmers to switch to cultivating pulses in the hope for better returns, a top trade body official said.
Reuters adds: ICE cotton futures rose on Wednesday, boosted by a weaker US dollar after the US Department of Agriculture (USDA) lowered its expectations for world inventory for the 2014/15 crop year, which ends in July, in its monthly supply demand report. The most-active December contract on ICE Futures US settled up by 0.42 cent on Tuesday at 65.79 cents per pound. It traded within a range of 65.39 and 65.93 cents a pound.
The USDA lowered its expectations for 2015/16 beginning and ending stocks in India, one of the world's top producers, but unexpectedly left its 2014/15 forecast for exports from top-exporter United States at 10.7 million bales. The December contract's premium to the July contract rose to 0.90 cent per lb from 0.82 the prior session The following deals reported 400 bales of cotton from Ghotki at Rs 5375, 1200 bales from Khanpur Mehar at Rs 5400, 2000 bales from Dharki at Rs 5450, 200 bales from Chistian at Rs 5400 and 400 bales from Bahawalpur at Rs 5575, 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 10.06.2015
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37.324 Kgs 5,500 150 5,600 5,650 -50
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Equivalent
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40 Kgs 5,894 160 6,001 6,054 -53
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