The mills and spinners rushed to make fresh deals owing to persistent fall in rates on the cotton market on Thursday, dealers said. The official spot rate dropped further by Rs 50 to Rs 6,500, dealers said. In Sindh, seed cotton prices also came under pressure, shedding Rs 200 to Rs 3000-3300 and in Punjab rates of Phutti, also slipped at Rs 2600-3200, per 40 kg, they said.
In ready business, around 15000 bales of cotton changed hands between Rs 6450 and Rs 6750, they said. According to the market sources, in line with the global track where leading markets witnessed fresh downward trend owing to higher cotton production estimates for India and the US. In the beginning seasons of the week, the market saw rising trend but since reports from world cotton markets reached the domestic markets, upward trend vanished. The reports coming from global markets suggest that India is going to harvest good cotton crop this season. Reports of rise in cotton production, propelling mills to replenish their stocks, cotton analyst, Naseem Usman said.
Reuters adds: Cotton futures fell for a third straight session on Wednesday to their lowest level since early July on speculator selling towards the end of the month, ahead of weekly export sales data from the United States Department of Agriculture (USDA) on Thursday.
The following deals were reported: 1400 bales from Kotri at Rs 6450/6675, 400 bales from Kot Ghulam Muhammad at Rs 6475/6500, 1600 bales from Shahdadpur at Rs 6500/6675, 800 bales from Shahpur Chakar at Rs 6550/6600, 1000 bales from Hyderabad at Rs 6550/6600, 800 bales from Khipro at Rs 6550/6600, 3000 bales from Sanghar at Rs 6550/6650, 800 bales from Jhole at Rs 6550/6650, 400 bales from Maqsoodo at Rs 6600, 400 bales from Khadro at Rs 6600, 200 bales from Moro at Rs 6600, 200 bales from Saleh Pat at Rs 6600, 2000 bales from Tando Adam at Rs 6600/6700, 200 bales from Chichawatni at Rs 6600, 400 bales from Vehari at Rs 6600/6700, 800 bales from Khanewal at Rs 6600/6700, 200 bales from Haroonabad at Rs 6700 and 100 bales from Burewala at Rs 6750, 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 31-08-2016
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37.324 kg 6,500 135 6,635 6,685 - 50
Equivalent
40 kgs 6,966 145 7,111 7,165 - 54
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