Prices touched seasonal high level on renewed buying by mills and spinners, dealers said on the cotton market on Friday. The official spot rate was unchanged at Rs 6700, they said. In Punjab, Phutti prices were unchanged at Rs 3500-3750, as per 40 kg, they said. In the ready season, around 19,000 bales of cotton sold at Rs 6550-7250, they added.
Market sources said that brisk activity was seen as both small and big spinners rushed to make new deals amid hovering fears of short supply of quality lint in the coming days. Cotton analyst, Naseem Usman said that the shortage of quality cotton and rising prices in the world cotton market influenced sentiment.
Other analysts observed that limited stocks held by ginners with limited hope of higher Phutti (seed cotton) arrival triggered buying from some millers. Though it is expected that present trend may continue in the coming days, they said.
In the meantime, the Pakistan Cotton Ginners Association (PCGA) has released its fortnightly report indicating cotton production at 10.07 million bales, showing an increase by 10.07 percent against the last year.
Besides, reports appeared that National Assembly Standing Committee on Textile Industry recommended to announce support price for cotton crop to boost the cotton production in the country. According to Reuters, the New York cotton futures drifted lower on Thursday. The following deals were reported: 400 bales of cotton from Bakhar at Rs 6550, 400 bales from Faqirwali at Rs 6800, 200 bales from Bahawalpur at Rs 6950, 650 bales from Sadiquabad at Rs 7000, 7400 bales from Khnewal, 655 bales from Kot Sabzal all done at the same rate, 200 bales from Haroonabad at Rs 7050, 7278 bales from Bahawalpur at Rs 6900-7150, 200 bales from same station at Rs 7150 (conditional) and equal figure finalised at Rs 7250 (conditional), they 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 02-03-2017 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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