Persisting demand by mills and spinners helped rates to sustain present levels on the cotton market on Thursday, dealers said. The official spot rate was unchanged at Rs 5,600, dealers said. In Sindh, prices of seed cotton were at Rs 3250 and Rs 3300, per 40 kg, they said. In Punjab, gaining Rs 100 to Rs 3100 and Rs 3350, they said.
In ready session, over 19,000 bales of cotton changed hands between Rs 5000 and Rs 6060, they said. Some brokers said that most of mills and spinners were busy in fresh buying to meet urgent requirements. Cotton analyst, Naseem Usman said that the Trading Corporation of Pakistan (TCP) sold nearly 13,900 bales of cotton to mills at Rs 5985 and Rs 6060.
Besides, the ginners were asking higher prices for the fine quality but the mills and spinners were not ready to pay above their psychological levels, he added. According to reports, China sold a total of 17,500 tonnes of cotton from state reserves at an auction on Wednesday, according to a statement posted on a cotton industry website. The amount sold represents 97 percent of the total amount of cotton available at Wednesday's auction, and was sold at an average price of 12,230 yuan ($1,859.57) per tonne, according to the cncotton.com website.
Adds Reuters: ICE cotton futures rose on Wednesday as speculative buying in the grains market slightly lifted prices in light volume trade ahead of Thursday's British referendum on its EU membership. The December cotton contract on ICE Futures US settled up 0.14 cent, or 0.22 percent, at 64.53 cents per lb. It traded within a range of 64.11 and 65.21 cents a lb. The following deals reported: 800 bales from Rohri at Rs 5000, 200 bales from Kasowal at Rs 5100, same figure from Burewala at Rs 5000, 700 bales from Chichawatni at Rs 5000, 1800 bales from Rahim Yar Khan at Rs 5700-5800 and 1700 bales from Chani Goth at Rs 5600, 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 22-06-2016
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37.324 kg 5,600 135 5,735 5,735 NIL
Equivalent
40 kgs 6,002 145 6,147 6,147 NIL
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