Severe smog in Punjab caused price flare-up on the cotton market on Saturday in the process of trading activity, dealers said. The official spot rate went up by Rs 100 to Rs 6400, they said. As a result, prices followed the same track in the ready session, over 20,000 bales of cotton changed hands between Rs 6300-6600, they said. In Sindh seed cotton prices were up by Rs 100 to Rs 2800-3150, in the Punjab rates were at Rs 3000-3250, as per 40 kg, they said.
Cotton analyst, Naseem Usman said that prices went up sharply due to heavy smog in the Punjab. The mills and spinners were trying to make purchase of quality lint to replenish their stock, he added. The smog may damage the quality of cotton and likely size of production, other experts said. Besides, increasing demand in the both local and foreign markets for yarn may keep spinners active, they observed.
Adds Reuters: ICE cotton futures edged lower on Friday after hitting an over one-week high earlier in the session on strong technical resistance. Cotton contracts for December settled 0.36 cent, or 0.5 percent, lower at 68.72 cents per lb. It traded within a range of 68.35 and 69.37 cents a lb. The contract hit its highest since October 25 earlier in the session and was up 0.7 percent for the week. However, it also registered its biggest one day percentage drop in over a week. Total futures market volume fell by 8,981 to 31,135 lots. Data showed total open interest gained 485 to 235,040 contracts in the previous session.
The following deals were reported to have changed hands on the ready counter: 800 bales of cotton from Dherki at Rs 6550/6600, 600 bales from Ghotki at Rs 6550/6600, 400 bales from Mirpur Mathero at Rs 6550, 2000 bales from Khairpur at Rs 6400, 200 bales from Liaquatpur at Rs 6600, 400 bales from Basti Malok at Rs 6450, 1200 bales from Rahim Yar Khan at Rs 6550/6600, 600 bales from Fazilpur at Rs 6550, 400 bales from Bahawalpur at Rs 6500, 800 bales from Mianwali at Rs 6400/6500, 400 bales from DG Khan at Rs 6475, 400 bales from Nurpur Noranga at Rs 6450, 600 bales from Lodhran at Rs 6450, 200 bales from Hasilpur at Rs 6350, 400 bales from Fort Abbas at Rs 6350, 600 bales from Haroonabad at Rs 6300/6325, 400 bales from Burewala at Rs 6375, 600 bales from Alipur at Rs 6475, 200 bales from Tounsa Shreef at Rs 6475, 400 bales from Layyah at Rs 6400, 800 bales from Khanewal at Rs 6475/6500, 600 bales from Shujabad at Rs 6500, 1000 bales from Khanpur at Rs 6485/6500, 600 bales from Ahmedpur East at Rs 6450/6500, 400 bales from Yazman Mandi at Rs 6450, 200 bales from Gojra at Rs 6425 and 600 bales from Muhammadpur Dewan at Rs 6550/6600, 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 03.11.2017
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37.324 kg 6,400 145 6,545 6,445 +100/-
Equivalent
40 kgs 6,859 155 7,014 6,907 +107/-
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