A restricted selling by ginners pushed the rates further higher due to several factors on the cotton market on Friday, dealers said. The official spot rate strengthened by Rs 100 to Rs 6100, dealers said. In Sindh, seed cotton prices posted fresh gain of Rs 100 to Rs 3100 and 3350, similarly, in Punjab rates also picked up the same amount to Rs 3100 and 3450, per 40 kg, respectively, they said.
In ready business, more or less 6,000 bales of cotton changed hands between Rs 6300 and Rs 6500, they said. Cotton analyst, Naseem Usman said that influenced by global factors of big gap between demand and supply, the local market also remained highly volatile as slow arrivals of seed cotton failed to meet a surge in cotton demand from spinners.
Some experts feared that if monsoon rains prolonged in the cotton belt, it would hit quality and quantity of cotton. It is difficult to guess that how much prices to go up but it looks that rates may gain further ground in the near futures, they said.
Reuters adds: ICE cotton futures continued their rally, rising for the fifth straight session to the highest in over two years on Thursday on buying from speculators, amid a weaker dollar.
The following deals were reported: 400 bales from Kotri at Rs 6300, 600 bales from Sanghar at Rs 6300-6350, 400 bales from Hyderabad at Rs 6300-6350, 1400 bales from Tando Adam at Rs 6300-6400, 1200 bales from Mirpurkhas at Rs 6300-6400, 800 bales from Shahdadpur at Rs 6325-6400, 200 bales from Golarchi at Rs 6375, 300 bales from Burewala at Rs 6400-6450, 200 bales from Hasilpur at Rs 6500 and 200 bales from Chichawatni at Rs 6500, 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 14-07-2016
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37.324 kg 6,100 135 6,235 6,135 + 100
Equivalent
40 kgs 6,537 145 6,682 6,575 + 107
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