Some leading mills kept on the sidelines on the cotton market on Thursday because of easy supply of Phutti ahead of Eid-ul-Azha holidays, dealers said. The official spot rate continued to fall, losing Rs 100 to Rs 5,850, dealers said. In Sindh, seed cotton prices were at Rs 2800-3050 and in Punjab rates of Phutti were at Rs 2500-2900, as per 40 kg, they said.
In ready business, around 14,000 bales of cotton changed hands between Rs 5900 and Rs 6100, they said. According to the market sources, some leading mills did not take interest in fresh buying due to improved supply position and declining demand for cotton yarn.
Cotton analyst, Naseem Usman said that the mills have already replenished their stocks rapidly owing to falling cotton prices. He said that rising arrivals of seed-cotton exerted pressure on cotton prices. Other experts said that spinners are still worried about the duty and tax remission on export scheme which allows value-added textile industry to import fine count yarn, free of duty and taxes. The rising trend in the import of cotton yarn under the scheme is a major concern for the spinners, they observed. Even after the Eid-ul-Azha holidays, the prices may weaken further as arrivals will gain further momentum, they said.
Adds Reuters: Cotton futures rose on Wednesday to their highest level in three weeks, supported by gains in the oil and grains markets, ahead of a monthly supply-demand outlook from the US government next week. The following deals were reported: 3000 bales of cotton from Shahdadpur sold at Rs 5900/6000, 800 bales from Kotri at Rs 5950/6000, 2000 bales from Sanghar at Rs 6000, 1000 bales from Hyderabad at Rs 6000, 1000 bales from Tando Adam at Rs 6000, 2600 bales from Mirpurkhas at Rs 6000, 400 bales from Maqsoodo at Rs 6000, 200 bales from Jhole at Rs 6000, 200 bales from Kandiyaro at Rs 6050, 400 bales from Kumb at Rs 6050, 200 bales from Hasilpur at Rs 6000, 200 bales from Sahiwal at Rs 6000, 400 bales from Bahawal Nagar at Rs 6000, 600 bales from Chichawatni at Rs 6000, 300 bales from Renala Khurd at Rs 6000/6100, 200 bales from Vehari at Rs 6000, 200 bales from Samundri at Rs 6050 and 200 bales from Haroonabad at Rs 6100, 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 07-09-2016
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37.324 kg 5,850 135 5,985 6,085 - 100
Equivalent
40 kgs 6,269 145 6,414 6,522 - 108
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