Prices recovered on the cotton market on Saturday amid selective buying by mills and spinners, dealers said. The official spot rate recovered overnight losses by Rs 50 to Rs 5,600, dealers said. In both Sindh and Punjab prices of seed cotton were at Rs 3200 and Rs 3400 per 40 kg, respectively, they said.
In ready session, about 2600 bales of cotton changed hands between Rs 5200 and Rs 5800, they said. According to market sources, trading activity improved slightly on India's interest, propelling mills and spinners to make new deals. So, it is most likely that prices may go up in the coming days, they said. Cotton analyst, Naseem Usman said that the Trading Corporation of Pakistan (TCP) sold nearly 73000 bales of cotton to mills in the last few days. Other experts said that impact of Referendum in Britain on business of cotton will appear but in a long-term.
Adds Reuters: ICE cotton futures fell more than 1 percent on Friday as the dollar soared after Britain voted to leave the European Union and improving US crop growing conditions added to downward pressure. "Cotton was victimized by strong dollar as result of Brexit vote," said Keith Brown, principal at cotton brokers Keith Brown and Co in Moultrie, Georgia. US cotton is enjoying good growing conditions and the Texas crop is coming on very strong, Keith added.
The December cotton contract on ICE Futures US settled down 1 cent, or 1.53 percent, at 64.42 cents per lb. It traded within a range of 63.83 and 65.43 cents a lb. The following deals were reported: 647 bales from Chichawatni sold at Rs 5200, 500 bales from Noorpur at Rs 5590 and 1500 bales from Sadiqabad at Rs 5800, 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 24-06-2016
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37.324 kg 5,600 135 5,735 5,685 +50
Equivalent
40 kgs 6,002 145 6,147 6,093 +54
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