Prices came down on the cotton market on Wednesday as quality cautious buyers kept on the sidelines due to low quality, dealers said. The official spot rate was down by Rs 50 to Rs 4550, dealers said. Seed cotton prices in Sindh were at Rs 1700-2300, in Punjab, prices were at Rs 1800 and Rs 2350, they said. In the ready business, over, 5,000 bales of cotton changed hands between Rs 4475 and Rs 4850, they said.
Non-availability of fine type forced the mills and spinners to keep away to adopt wait-and-see mood. Cotton analyst, Naseem Usman said that it is expected that better quality of cotton will start reaching within one or three weeks.
In the meantime, the spinning industry is facing liquidity crunch, disturbed by government's unfriendly attitude in resolving their issues, not encouraging buyers to make big forward deal.
Reuters adds: Benchmark cotton on ICE Futures US fell for the second straight session on Tuesday, matching the prior session's low in light trading after the release of a weekly report on crop progress amid a sharply stronger US dollar.
ICE December cotton settled down by 0.36 cent on Tuesday, a 0.6 percent loss, at 63.64 cents per pound. It traded within a range of 63.37 and 64.25 cents a pound.
Total futures market volume fell by 3,667 to 14,753 lots. Data showed total open interest gained 569 to 179,372 contracts in the previous session.
The following deals reported: 600 bales from Kotri at Rs 4475-4525, 400 bales from Shahdadpur at Rs 4475-4500, 800 bales from Hyderabad at Rs 4500-4600, 1000 bales from Tando Adam at the same figure, 1600 bales from Sanghar at Rs 4550-4600, 200 bales from Matli at Rs 4525, same figure from Jhole at the same rate, 400 bales from Chichawatni at the same rate and 200 bales from Khanewal finalised the same level, dealers 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 04.08.2015
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37.324 Kgs 4,550 150 4,685 4,735 -50
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Equivalent
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40 Kgs 4,876 160 5,021 5,075 -54
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