Prices went up modestly on the cotton market on Saturday amid tight supply of seed cotton, dealers said. The official spot rate extended overnight gains, picking up Rs 50 to Rs 4,550, dealers said. Seed cotton prices in Sindh were higher by Rs 50 to Rs 2350 and Rs 2450 and in Punjab rates at Rs 2200 and Rs 2450, they said.
In the ready business, over 9,000 bales of cotton changed hands between Rs 4575 and Rs 4625, they said. A few experts were of the opinion that some exporters were also looking fine quality at the present levels, dealers said. Besides, supply of phutti is slow due to unfavourable weather, they said. Cotton analyst, Naseem Usman said that during the last several sessions, rates stabilised on the back of emerging factors. It looks that prices may manage to hold the present levels in times to come, he added.
Reuters adds: ICE cotton futures inched lower on Friday after correcting upward in the prior session from a two-week low, as speculators refrained from buying after suffering heavy losses during the sharp move lower earlier in the week. According to reports, the government is mulling to impose a 10 percent regulatory duty on the raw cotton to discourage the export of raw material in bulk. December cotton on ICE Futures US settled down 0.35 cent on Friday, a 0.6 percent loss, at 63.00 cents per pound. It traded within a range of 62.76 and 63.62 cents a pound. Total futures market volume fell by 2,619 to 15,534 lots. Data showed total open interest gained 109 to 181,015 contracts in the previous session.
The following deals reported: 1200 bales of cotton from Shahdadpur at Rs 4600, 400 bales from Jhole at the same rate, 600 bales from Sanghar at Rs 4600-4650, same figure from Rahim Yar Khan at the same rate, 400 bales from Kotri at Rs 4625, same figure from Tando Adam at Rs 4650, 200 bales from Gojra at Rs 4575, same number from Khanewal at the same price, 400 bales from Mongi Bangla at Rs 4575-4600, same figure from Adda Flor at the same rate, 400 bales from Afifwala at Rs 4600, 200 bales from Muridwala, 1000 bales from Burewala, 200 bales from Gaggo Mandi, 600 bales from Chichawatni, 200 bales from Jahanian, 400 bales from Hasilpur, 200 bales from Rahim Yar Khan all finalised at the same rate, 600 bales from Vehari at Rs 4600-4625 and 200 bales from Mian Chano at Rs 4625, 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 28.08.2015
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37.324 Kgs 4,550 135 4,685 4,635 +50
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Equivalent
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40 Kgs 4,876 145 5,021 4,968 +53
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