Prices showed steadier trend on the cotton market on Thursday as the Pakistan Cotton Ginners Association (PCGA) fortnightly report released, showing a decline of 33.62 percent in seed cotton arrival figures against the last year, dealers said. The official spot rate was unchanged at Rs 5,350, dealers said. In Sindh, prices of seed cotton at Rs 1600 and Rs 2800, in the Punjab, rates were at Rs 2000 and Rs 3000, they said.
In the ready business, over 2000 bales of cotton changed hands between Rs 5200 and Rs 5600, they said. Market sources said that cautious buying of best quality was seen by spinners and mill. They said that PCGA released fortnightly report till February 15 at 9.69 million bales.
Commenting on the shortfall in phutti arrivals' figure, cotton analyst, Naseem Usman said that this factor may materialise in the coming days. Rates likely to stabile or may go up as the ginners have very little stock of unsold, they added.
Reuters adds: Cotton futures closed slightly lower on Wednesday, giving up early gains as short covering that boosted prices in the previous session faded and rising exchange stocks eased concerns about tightening supplies. On Tuesday, prices notched up their biggest one-day gain in nearly three months after an eight-day losing streak, as bargain prices below 60 cents per lb triggered mill buying and short covering.
The most-active May cotton contract on ICE Futures US settled down 0.19 cent, or 0.32 percent, at 59.55 cents per lb, after hitting 59.35 cents a pound. The following deals reported: 200 bales of cotton from Dharanwala at Rs 5200, 400 bales from Marrot at Rs 5325, 200 bales from Fort Abbas at Rs 5350, 400 bales from Haroonabad at Rs 5400, same figure from Mianwali at Rs 5500 and 600 bales from Rahim Yar Khan at Rs 5500-5600, 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 17-02-2016
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37.324 kg 5,350 135 5,485 5,485 NIL
Equivalent
40 kgs 5,734 145 5,879 5,879 NIL
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