Cotton market: prices halt further decline on modest trade

Prices stopped more decline on the cotton market on Friday in the process of modest trading, dealers said. The official spot rate was unchanged at Rs 6,600, dealers said. In Sindh and Punjab, seed cotton prices were inert at Rs 2900-3200, as per 40 kg, respectively, they said.
In ready business, nearly 2000 bales of cotton changed hands between Rs 6650 and Rs 7000, they said.
According to the market sources, prices did not fluctuate sharply due to less buying interest among main buyers. Besides, short supply and persistent downward in the world cotton market did not encourage mills to continue forward buying, they said.
Cotton analyst, Naseem Usman said that spinners were worried about the quality of cotton because of high moisture content in Phutti owing to recent rains.
Recent rains in the country have mostly affected cotton crop in Sindh where the crop was still in growing age and rains could be beneficial, other experts said.
Reuters adds: Cotton futures snapped a three day losing streak and rose on Thursday as investors covered their short positions ahead of a monthly supply-demand outlook from the US government and on expectations of excessive rains in Texas.
The following deals were reported: 200 bales of cotton from Sanghar at Rs 6650, same number from Tando Adam at Rs 6800, same figure from Chodgi at the same rate, same number from Pithoro at Rs 6850, 600 bales from Depalpur at Rs 6900, 200 bales from Sammundri at the same rate, same number from Alipur at Rs 6950 and 150 bales from Sahiwal at Rs 7000, 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 11-08-2016

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37.324 kg          6,600      135         6,735        6,735            NIL

Equivalent

40 kgs             7,073      145         7,218        7,218            NIL

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