Active mills demand for fine quality helped prices to hold firmness on the cotton market on Thursday, dealers said. The official spot rate was unchanged at Rs 4,650, dealers said. Seed cotton prices in Sindh were unchanged at Rs 2450 and Rs 2550 and in Punjab rates were at Rs 2350 and Rs 2550, they said. In the ready business, over 10,000 bales of cotton changed hands between Rs 4700 and Rs 4800, they said.
According to some brokers, supply position is still tight, causing a rise in the rates. Cotton analyst, Naseem Usman said that the Trading Corporation of Pakistan (TCP) offered tender to cotton but failed to get any desired expectations.
He further said that trading activity may decline slightly due to pause in phutti arrivals. Mills preferred to be sidelined instead of purchasing inferior variety of seed cotton, he said.
Reports showing that China is expected to produce 5.5 million tonnes of the fibre in the upcoming season, an industry group said, slightly below an earlier forecast but not a large enough drop to boost imports.
The China Cotton Association (CCA) had previously predicted a crop of 5.86 million tonnes for the harvest beginning in October.
Adds Reuters: ICE cotton futures fell for the first time in six sessions on Wednesday, after a five-day rally following the release of a bullish US government crop forecast, as producers saw price levels near 5-1/2 week highs as a good selling opportunity.
December cotton on ICE Futures US settled down by 0.1 cent on Wednesday, a 0.2 percent loss, at 66.53 cents per pound. It traded within a range of 65.83 and 66.80 cents a pound.
Total futures market volume rose by 3,556 to 22,369 lots. Data showed total open interest gained 2,925 to 190,906 contracts in the previous session.
The following deals reported: 200 bales of cotton from Golarchi at Rs 4700, 1600 bales from Sanghar at Rs 4725-4750, 200 bales from Matli at Rs 4750, 1000 bales from Tando Adam, same figure from Shahdadpur, same number from Mirpurkhas all done at the same rate, 400 bales from Shor Kot, 200 bales from Haroonabad same number from Jhang all finalised at Rs 4700, same number from Mongi Bangla at Rs 4725, same figure from Kabirwala at the same price, 600 bales from Gojra at Rs 4725-4750, 600 bales from Khanewal at the same rate, 200 bales from Bahawal Nagar at Rs 4750, same figure from Hasilpur, same numbr from Shahir Sultan, 100 bales from Burewala at the same rate and 200 bales from Mian Chano at Rs 4800, 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 19.08.2015
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37.324 Kgs 4,650 135 4,785 4,785 NIL
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Equivalent
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40 Kgs 4,983 145 5,128 5,128 NIL
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