Lean business activity was seen on the cotton market on Saturday as leading buyers kept on the sidelines due to lack of fresh leads, dealers said. The official spot rate was lower by Rs 50 to Rs 8600, they added. In the ready session, only 400 bales of cotton from Rahim Yar Khan sold at Rs 8700, they said.
According to the market sources, business community is living under the umbrella of persisted uncertainties. Unprecedented the increase in the value of dollar versus the rupee to hit value-added textile sector adversely, instead of benefiting, they observed. Cotton analyst, Naseem Usman said that apart from all, the local market is on track of global market.
Sowing is on full swing in both Sindh and Punjab despite rains and storm, he said and adding that in Sakrand, heavy rains and storm hurt the standing crop. Growers may sow crop to keep a balance between demand and supply, brokers said.
Adds Reuters: Cotton prices fell over 1% on Friday, and were headed for their fifth straight weekly fall, with investors concerned about the effects of the China-US trade conflict as the two sides appeared far from reaching a resolution. The most-active cotton contract on ICE Futures US, July, fell 0.96 cent, or 1.44%, at 65.84 cents per lb at 2:19 pm EDT (1819 GMT). Total futures market volume fell by 2,267 to 21,589 lots. Data showed total open interest gained 1,434 to 217,265 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 17-05-2019
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37.324 kg 8,600 160 8,760 8,810 - 50/-
Equivalent
40 kgs 9,217 171 9,388 9,441 - 53/-
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