Subdued business was seen on the local market on Saturday as most of the leading buyers kept on the sidelines due to short supply position, dealers said. The official spot rate was unchanged at Rs 7400, they added. In the ready session, approximately, 1000 bales of cotton changed hands between Rs 6475-7000, they said. According to the market sources, as a result of less supply of quality cotton and lack of buying interest from buyers kept the volume of business at low ebb.
Cotton analyst, Naseem Usman said that barring a couple of deals from needy spinners and mills there were hardly anything noteworthy, it looks that prices would fluctuate within certain levels during Ramazan. Only 200,000 bales of unsold cotton are left with the ginners, most are inferior variety, other brokers said.
They also said that due to favourable weather, growers were expecting that the cotton crop may touch over 14 million bales next year. Adds Reuters: ICE cotton futures edged up slightly after touching their lowest in more than two-week on Friday after the demand outlook from the United States Department of Agriculture on Thursday disappointed investors.
The most active ICE cotton contract for July expiry settled up 0.06 cent, or 0.1 percent, at 84.62 cents per lb. It traded within a range of 83.5 cents - its lowest since April 25 and 84.96 cents. On a weekly basis, the contract fell 2 percent - its biggest decline since the week ending Feb. 2. The USDA projected 2018/19 US cotton exports at 15.50 million bales, the same as its 2017/18 estimates in its World Agricultural Supply and Demand Estimates (WASDE) report. The December contract settled mostly up at 80.24 cents.
Total futures market volume fell by 5,088 to 29,865 lots. Data showed total open interest fell 595 to 285,724 contracts in the previous session. The following deals were reported: 200 bales of cotton from Kabirwala at Rs 7000, 500 bales from Jattoi at Rs 6600 and 400 bales from Fort Abbas at Rs 6475, 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 11-05-2018
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37.324 kg 7,400 145 7,545 7,545 NIL
Equivalent
40 kgs 7,931 155 8,086 8,086 NIL
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