Rising trend persisted on the cotton market on Wednesday in the process of moderate trading, dealers said. The official spot rate was unchanged at Rs 7000, they said. In ready session, over 20,000 bales of cotton changed hands between Rs 6125-7600, they said. In Sindh and Punjab, seed cotton prices were at Rs 2800-3500, as per 40 kg, they said.
Market sources said that prices gained momentum as leading buyers continued buying of lint cotton. They also observed that the spinners were demanding the waiver of duty and taxes on cotton imports while the value-added sector is also seeking removal of duty on yarn import. Cotton analyst, Naseem Usman said that under the circumstances prices may maintain present levels in the coming days.
Most of buyers were focusing on the local cotton for replenishing their stocks as there was growing feeling in the trading ring that imports would be difficult, particularly after reports of pest attack on Indian cotton crop, they said. Adds Reuters: ICE cotton futures edged lower on Tuesday after trading within a tight range earlier in the session as traders liquidated funds amid the recent rally in prices.
Cotton contracts for March settled down 0.17 cent, or 0.23 percent, at 75.03 cents per lb. It traded within a range of 74.93 and 75.92 cents a lb. The March contract touched an all-time high of 76.75 cents a lb on Friday, helped by demand from speculators.
Total futures market volume fell by 196 to 23,510 lots. Data showed total open interest fell 301 to 265,855 contracts in the previous session. The following deals reported: 600 bales of cotton from Ghotki at Rs 7500, 400 bales from Saleh Pat at Rs 7150, 800 bales from Rohri at Rs 7000/7050, 800 bales from Khairpur at Rs 7000/7050, 1610 bales from Fazilpur at Rs 7500/7600, 600 bales from Sadiqabad at Rs 7500, 800 bales from Rahim Yar Khan at Rs 7500, 1000 bales from Jalalpur at Rs 7000/7400, 1200 bales from Hasilpur at Rs 7300, 400 bales from Ghazi Ghat at Rs 7300, 400 bales from Ahmedpur East at Rs 7200/7250, 200 bales from Multan at Rs 7200, 200 bales from Arifwala at Rs 7000, 200 bales from Tonsa Sharif at Rs 6800, 1800 bales from Mianwali at Rs 6400/6750, 2000 bales from Fort Abbas at Rs 6650/6700, 800 bales from Burewala at Rs 6700, 800 bales from Yazman Mandi at Rs 6550/6600, 1400 bales from Dharanwala at Rs 6600, 800 bales from Bahawal Nagar at Rs 6500, 1200 bales from Mianwali at Rs 6400, 1200 bales from Haroonabad at Rs 6500/6200 and 200 bales from Chistian at Rs 6125, 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 19.12.2017
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37.324 kg 7,000 145 7,145 7,145 NIL
Equivalent
40 kgs 7,502 155 7,657 7,657 NIL
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