Prices held the present levels on the cotton market on Thursday in the process of trading, dealers said. The official spot rate was unchanged at Rs 6700, they said. In Sindh, seed cotton prices were modestly higher by Rs 100 to Rs 3300-3500, they said. In Punjab, phutti rates were at Rs 3300 and Rs 3800, as per 40 kg, they added.
In the ready session, around 6,000 bales of cotton changed hands between Rs 6800 and Rs 7000, they said.
According to the market sources, trading activity could not pick up as most the leading buyers and sellers were on the sidelines amid short supply.
Cotton analyst, Naseem Usman said that short crop coupled with high prices forced spinners to import cotton from different sources.
On the other hand, the ginners were not also interested in fresh selling in expectations of better return in days to come, he added.
Reports showing that India is facing short position, which may cause further increase in the rates, other experts said.
-- They also said that tight supply of quality cotton
-- Likely to push rates further higher in the coming days.
Reuters adds: ICE cotton futures slipped nearly 1 percent on Wednesday as mills rolled over their March contracts ahead of the first notice day due next week.
The May cotton contract on ICE Futures US fell 0.86 percent, the biggest one-day percentage decline since February/ 6, settling down 0.67 cent at 77.28 cents per lb. It traded within a range of 77.16 and 78.25 cents a lb.
The following deals reported: 3000 bales from Rahim Yar Khan at Rs 7000 and 2400 bales from Haroonabad at Rs 6800, 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 15-02-2017 in Rupees
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37.324 kg 6,700 135 6,835 6,835 NIL
Equivalent
40 kgs 7,180 145 7,325 7,325 NIL
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