Strong demand helped the rates to maintain present levels on the cotton market on Saturday in the process of trading, dealers said. The official spot rate was unchanged at Rs 6400, they said. In the ready session over 9000 bales of cotton changed hands between Rs 6375 and Rs 6700, they said.
In Sindh, seed cotton rates were at Rs 2700-3100 per 40 kg, they said. In the Punjab, phutti prices were available at Rs 3000-3350 per 40 kg, they said. According to the market sources the spinners played an active role in order to replenish their stocks to meet their near future demand. The arrivals of seed cotton picked up, but despite this it is most likely that spinners and mills may face shortage problem.
Cotton analyst, Naseem Usman, however, said that there are growing fears that cloudy weather in Sindh and Punjab could encourage strong buying from spinners and this factor may help in stabilising rates in the coming days. He also said that cotton supply likely to be short in demand as spinners are short of cotton stocks due to delay in arrivals of phutti early in the season.
Adds Reuters: ICE cotton futures rose to their highest levels since mid-June on Friday, supported by strong demand for the US crop. The December cotton contract on ICE Futures settled up 0.46 cent, or 0.66 percent, at 70.62 cents per lb. It hit its highest since June 15 at 70.83 cents per lb.
Total futures market volume rose by 475 to 18,054 lots. Data showed total open interest fell 503 to 216,836 contracts in the previous session. Meanwhile, China will launch cotton yarn futures on Zhengzhou Commodity Exchange on August 18, the Securities Times reported on Friday, citing the country's securities regulator.
The following deals reported: 1000 bales of cotton from Burewala, Pakpattan and Haroonabad finalised at Rs 6700, 800 bales from Mirpurkhas at Rs 6375/6400, 1000 bales from Sanghar at Rs 6400, 800 bales from Hyderabad, 2000 bales from Shahdadpur, 200 bales from Shahpur Chakkar, same figure from Moro, 800 bales from Kotri all done at the same rate and 2000 bales from Tando Adam at Rs 6400-6425, 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 Ex-Karachi Ex. KHI. As Ex-Karachi
on 03.08.2017
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37.324 kg 6,400 145 6,545 6,495 + 50/-
Equivalent
40 kgs 6,859 155 6,014 6,960 + 54/-
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