Cotton market: mills, spinners indulge in forward buying ahead of long week-end

Mills and spinners indulged in forward buying on the cotton market on Tuesday ahead of long week-end in observance of Muharram holidays, dealers said. The official spot rate dropped Rs 50 to Rs 5350, dealers said. In Sindh, seed cotton prices were unchanged at Rs 2600 and Rs 3000 and in Punjab rates also depicted no change at Rs 2800 and Rs 3000, they said.
In the ready business, around 24,000 bales of cotton changed hands between Rs 4760 and Rs 5600, they said. Market sources said that since the seed cotton supply improved, prices have started coming down. Other experts said that the ginners were under pressure as they were stocking lint in expectations of further rise in the rate due to short supply, but now situation has changed because of improvement in seed cotton arrivals.
Cotton analyst, Naseem Usman said that value-added sector is not happy with the relief package announced by the government last week, in the meantime, the All Pakistan Textile Mills Association (APTMA) lauded the same.
Reuters adds: ICE cotton futures fell the most in nearly a month on Monday alongside a broad-based commodities sell-off and technical pressure after prices failed to surpass key resistance. The ICE cotton contract for December settled down 0.61 cent, or nearly 1 percent, at 63.24 cents per lb. It traded within a range of 62.96 and 64.07 cents a lb. Certificated cotton stocks deliverable as of Friday totalled 43,319 480-lb bales, up from 42,922 in the previous session.
The following deals reported: 400 bales from Mirpurkhas at Rs 4760, 1600 bales from Shahdadpur at Rs 4800-4850, 800 bales from Tando Adam at Rs 4875-4975, 1000 bales from Sanghar at Rs 4900-5000, 400 bales from Jhole at Rs 4950, 2000 bales from Nawabshah at Rs 5300-5375, 400 bales from Bhira City at Rs 5400, 4000 bales from Khairpur at Rs 5450-5500, 1600 bales from Rohri at Rs 5400-5475, 1000 bales from Salehpat at Rs 5450-5500, 400 bales from Chichawatni at Rs 5200, 400 bales from Multan at Rs 5300, 1200 bales from Bahawalpur at Rs 5300-5450, 1000 bales from Haroonabad at Rs 5475-5450, 500 bales from Hasilpur at Rs 5350-5500, 400 bales from Jalalpur at Rs 5400, 800 bales from Dera Ghazi Khan at Rs 5400-5500, 600 bales from Tonsa Sharif at Rs 5400-5500, 600 bales from Chistian at Rs 5450, 600 bales from Rajanpur at Rs 5500, 400 bales from Uch Sharif at Rs 5500, 400 bales from Shahir Sultan at Rs 5500, 800 bales from Mohammadpur Dewan at Rs 5500-5550, 1000 bales from Alipur at Rs 5500-5575, 1000 bales from Rahim Yar Khan at Rs 5500-5600, 800 bales from Liaquatpur at Rs 5525, 600 bales from Sadiqabad at Rs 5600 and 400 bales from Khanpur at Rs 5600, 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 19-10-2015

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37.324 kg         5,350       135        5,485         5,535            -50

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Equivalent

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40 Kgs            5,734       145        5,879         5,932            -53

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