Slow business seen after removal of ban on import of Indian cotton

Modest business was seen on the cotton market on Thursday as leading buyers kept on the sidelines to observe the developments after removal of a ban on import of cotton from India, dealers said. The official spot rate was unchanged at Rs 6,600, they said. In Sindh, seed cotton prices were same at Rs 2800-3300, in the Punjab, rates were at Rs 2800-3450, as per 40 kg, they said.
According to the market sources, situation has eased after the removal of a ban on import of Indian cotton. The spinners were under pressure due to shortage of best quality, they said. It is expected that prices may show some weakness but fluctuations will be limited, other experts said.
Cotton analyst, Naseem Usman said that buyers will adopt cautious attitudes due to quality factor. Impact of news of removal of ban on local business will appear next week, he added. Adds Reuters: ICE cotton rose over 1 percent to hit an over 2-1/2-month high on Wednesday fuelled by technical buying, a day ahead of export sales data from the US Department of Agriculture (USDA).
Cotton contracts for March settled up 1.29 cents, or 1.79 percent, at 73.43 cents per lb. It traded within a range of 71.75 and 73.46 cents a lb, its highest level since September 11. Total futures market volume rose by 7,522 to 33,793 lots. Data showed total open interest gained 2,874 to 237,373 contracts in the previous session. The following deals reported: 400 bales of cotton from Tando Adam sold at Rs 6250, 600 bales from Rohri at Rs 6450-6500 and 2000 bales from Saleh Put at Rs 6450-6700, 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 29.11.2017

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37.324 kg         6,600       145         6,745        6,745            NIL

Equivalent

40 kgs            7,073       155         7,228        7,228            NIL

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