Official spot rate was unchanged on the cotton market on Wednesday in the process of lacklustre trading activity, dealers said. The official spot rate was unchanged at Rs 8,700, they added. In the ready session, not a single deal report till our going to the press, they said. Prices of seed cotton in Sindh and Balochistan were at Rs 3000-3500 and in Punjab seed cotton prices at Rs 3000-3600, they said.
Market sources said that most of the leading participants were on the sidelines due to lack of interest and partly because of Asian markets' closure. Some of them were not so keen to sell cotton because they were anticipating that news of shortfall in the phutti arrivals figures issued by the Pakistan Cotton Ginners Association (PCGA) fortnightly report would push the rates up, but it could not materialised, so they preferred to be on the sidelines to see the prevailing developments.
Whereas, the ginners are worried about the rates, because prices are not going up, dealers said. Last Monday, the Federal Board of Revenue (FBR) notifies the exemption of customs duty on import of cotton. Adds Reuters: ICE cotton futures rose on Tuesday, ahead of data from the US Department of Agriculture due later in the week and optimism over a trade deal between the United States and China.
The most active cotton contract on ICE Futures US-the March contract settled up 0.64 cent, or 0.88 percent, at 73.4 cents per lb. Total futures market volume fell by 17,727 to 30,981 lots. Data showed total open interest gained 1,550 to 239,624 contracts in the previous session.
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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 04-02-2019
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37.324 kg 8,700 160 8,860 8,860 NIL
Equivalent
40 kgs 9,324 171 9,495 9,495 NIL
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