Official spot rate fell modestly on the cotton market on Friday amid cautious selling by ginners, dealers said. The official spot rate was down by Rs 50 to Rs 5,200, dealers said. In Sindh, seed cotton prices were at Rs 2200 and Rs 2800 and in the Punjab, rates were at Rs 2300 and Rs 3000, they said. In the ready business, around 5,000 bales of cotton finalised between Rs 5300 and Rs 5600, they said.
Cotton analyst, Naseem Usman, commenting on the latest falling trend in activity said that on the one hand, the ginners were not keen to sell cotton at the present levels, on the other hand, the mills were not interested in fresh purchasing of cotton. As a whole the situation look not in favour of traders as even higher rate of dollar and short crop news failed to propel participants to look ahead, other experts said.
Reuters adds: Cotton futures rose on Thursday, hitting a six-week high, buoyed by a strong US export sales report and a weaker dollar and amid continued concerns about a shortage of high-grade cotton, as a late harvest and weather damage have harmed crop quality. They observed that textile sector is in deep crisis in the absence of fresh direction, huge stock of unsold cotton yarn is a big concern for the cotton traders. March cotton on ICE Futures US settled up 0.45 cent, or 0.71 percent, at 63.95 cents per lb, after rising as high as 64.30 cents a lb, the highest level since October 22.
The United States exported 287,100 480-lb bales of cotton last week, the highest weekly total in the 2015/16 marketing year, which began in August. Total futures market volume rose by 3,815 to 22,859 lots. Data showed total open interest gained 2,603 to 183,382 contracts in the previous session. The following deals reported, 400 bales of cotton from Dadu sold at Rs 5300-5325, 600 bales from Rohri at Rs 5450, 2000 bales from Multan at Rs 4600-5200, 400 bales from Jahania at Rs 4900, 600 bales from Fort Abbas at Rs 5300-5400, 400 bales from Hasilpur at Rs 5400 and 600 bales from Sadiqabad 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 03-12-2015
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37.324 kg 5,200 135 5,335 5,385 - 50
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Equivalent
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40 kgs 5,573 145 5,718 5,771 - 53
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