Increase in demand of fine quality boosted rates on the cotton market on Monday in the process of trading, dealers said. The official spot rate was up by Rs 50 to Rs 5,250, dealers said. In Sindh, seed cotton prices were at Rs 1500-2700, and in Punjab prices at Rs 1800 and Rs 2800, they said.
In the ready business, over 7000 bales of cotton changed bands at Rs 5200-5500, they said. Market sources said that rise in international market, gave a boost to the prices. Cotton analyst, Naseem Usman said that fine quality of seed cotton is diminishing with the passage of time and coupled with slight improvement in demand helped the prices to go up.
Rise in fresh buying was a positive change because for a long-time barring a couple of deals from needy spinners, the market was lack of buying interest, he added. Almost all the leading cotton producing textile manufacturing countries, including the US, China and India were currently facing a recession-like situation, the dampened demand for fabrics and other textile products the world over has directly impacted cotton trade. Brokers feared falling cotton prices would have direct implications on the next cotton crop.
The following deals reported: 1000 bales of cotton from Fort Abbas at Rs 5200, 3400 bales from Sadiqabad at Rs 5400, 1200 bales from Rajanpur at Rs 5500 and 2200 bales from Muhammadpur Dewan at Rs 5500, 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 05-03-2016
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37.324 kg 5,250 135 5,385 5,335 + 50
Equivalent
40 kgs 5,626 145 5,771 5,718 + 53
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