Strong demand by spinners kept prices stable on the cotton market on Saturday, dealers said. The official spot rate was unchanged at Rs 5,400, dealers said. In Sindh, prices of seed cotton were at Rs 2000 and Rs 3000, in the Punjab, rates were at Rs 2300 and Rs 3100, they said. In the ready business, over 20,000 bales of cotton changed hands between Rs 4800 and Rs 5650, they said.
According to the market sources, mills and spinners demand increased due to shortage of quality lint, in the meantime, undertone remained firm. Some experts said that dwindling stock of fine quality cotton, forced most of leading spinners and mills to keep rush buying to meet their immediate needs. Cotton analyst, Naseem Usman said nearly, one million bales of unsold stock are lying with the ginners, who also look not in a hurry to sell to get better prices in the coming days. The spinners continue to import cotton from India and around one million bales have imported to meet the requirement, brokers said.
Reuters adds: Cotton futures fell to a four-month low on Friday, declining for the third straight session as commercial end-users held off on fixing cotton prices amid continued speculation China would soon announce a plan to auction off its massive cotton stockpile. March cotton on ICE Futures US settled down 0.26 cent, or 0.43 percent, at 59.97 cents per lb. It traded within a range of 59.83 and 60.59 cents a lb.
Total futures market volume fell by 2,728 to 55,428 lots. Data showed total open interest fell 347 to 199,654 contracts in the previous session. The following deals reported: 1600 bales of cotton from Tando Adam at Rs 4800, 400 bales from Sakrand at Rs 5250, 4000 bales from Salehpat at Rs 5450, 6000 bales from Rohri at Rs 5450, 400 bales from Khanpur Mehar at Rs 5575, 2000 bales from Ghotki at Rs 5575, 600 bales from Layyah at Rs 5200/5500, 400 bales from Vehari at Rs 5250, 2400 Mohammadpur at Rs 5600, 1200 bales from Sadiqabad at Rs 5600, 1000 bales from Khanpur at Rs 5650, 800 bales from Liaquatpur at Rs 5650, 800 bales from Mianwali at Rs 5650 and 2000 bales from Rahim Yar Khan at Rs 5650, they 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 04-02-2016
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37.324 kg 5,400 135 5,535 5,535 NIL
Equivalent
40 kgs 5,787 145 5,932 5,932 NIL
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