Steady conditions prevail on cotton market

The firmness prevailed on the cotton market on Monday as rates of cotton yarn showed improvement on strong demand, dealers said. As a result, the official spot rate was unchanged at Rs 6650, dealers said. In Sindh, seed cotton prices were higher at Rs 3200-3500, they said. In Punjab, phutti rates recovered slightly at Rs 3200 and Rs 3700, as per 40 kg, they added.
In the ready session, over 8,000 bales of cotton changed hands between Rs 5600 and Rs 7000, they said. Some brokers said that after the issuance of statutory regulatory orders (SROs), traders' interest revived and it will help in extending the volume of business in days to come. So, it appeared that outlook was optimistic and firm, they said and adding that despite the fact that arrivals of cotton are slow but the spinners were laying hands over the quality lint to meet their urgent requirements.
Cotton analyst, Naseem Usman, said that cotton from the Punjab variety is in demand because of best quality, so ginners may raise prices due to short of demand. Cotton markets in China are closed till middle of the current week and prices in other parts of world are gaining momentum, other viewers said.
The following deals reported: 4000 bales from Dharki sold at Rs 7000, 1200 bales from Shahdadpur at Rs 5700/5900, 900 bales from Sanghar at Rs 5600, 400 bales from Dahranwala at Rs 6700, 600 bales from Mian Channu at Rs 7000, 800 bales from Marrot at Rs 6775 and 400 bales from Fort Abbas at Rs 6700, 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 1-1/16"

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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   Ex-Karachi

                                                  on 28-01-2017   in Rupees

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37.324 kg         6,650      135        6,785         6,785             NIL

Equivalent

40 kgs            7,127      145        7,272         7,272             NIL

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