Trade activity remains low on cotton market

The volume of business could not pick up as both buyers and sellers failed to come on meeting ground, dealers said. The official spot rate was unchanged at Rs 6450, dealers said. In Sindh, seed cotton prices were higher at Rs 3100-3350, they said. In Punjab, phutti rates were at Rs 3100 and Rs 3575, as per 40 kgs, they added.
In the ready session, over 2,000 bales of cotton changed hands between Rs 6200 and Rs 6700, they said. According to market sources, trading could not pick up as the ginners were not interested in selling their stock at the present levels. The spinners were trying to lay hands over the lint cotton to run their short-tern requirements, they said.
Furthermore, cotton analyst, Naseem Usman said that textile exporters fell to 6.156 billion dollars despite recovery in value-added sector. Activity came under pressure partly because of confusions prevailed regarding textile exports package announced by the Prime Minister Nawaz Sharif, other analysts said.
Reuters adds: ICE cotton futures rose marginally to hit a more than one-week high on Friday, supported by bullish export sales data and a weaker dollar.
The March cotton contract on ICE Futures US hit a session high of 73.43 cents a lb, a peak since January 12. The contract rose about 1.1 percent for the week.
The following deals reported: 200 bales from Shujabad at Rs 6200, same figure from Fort Abbas at Rs 6550, 600 bales from Dera Gazi Khan at Rs 6700 and 1000 bales from Rahim Yar Khan at the same level, 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    Expenses   Ex-Karachi   Ex, KHI, As on    Ex-Karachi

                                                 20-01-2017       in Rupees

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37.324 kg     6,450      135         6,585          6,585               NIL

Equivalent

40 kgs        6,912      145         7,057          7,057               NIL

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