Holiday mood persisted on the cotton market on Monday as leading participants were on the sidelines on account of Shab-e-Brat, dealers said. The official spot rate was unchanged at Rs 6,400, they said. In the ready business, prices were steady as around 800 bales of cotton changed hands between Rs 6350-6400, dealers said. Prices of seed cotton per 40 kg from Sindh were firm at Rs 2850-2950, they said.
Demand is fall by foreign buyers, in the local market, traders of cotton are upset in the absence of gas and power acute shortage, cotton analyst, Naseem Usman said. Textile exporters termed SNGPL's move unilateral and arrogant and expressed fear that present curtailment of gas would lead to huge production loss to the textile industry.
Commenting on the less supply of gas, he expressed grave concern over sudden suspension of gas supply to industries on account of annual turnaround of gas fields. Phutti arrivals are steady but the cotton traders are confused over the prevailing situation, which is indicating that prices may come down further in the coming days, other experts said.
According to the Reuters, the ICE cotton fell for a sixth straight session, extending its slide after posting the biggest weekly loss in a year, undermined by concerns about the possibility of a credit squeeze in China, the world's top textile market, which would slow fiber demand. The benchmark December cotton contract on ICE Futures US fell 1.46 cents, or 1.7 percent, to settle at 83.18 cents per lb. The following deals reported: 600 bales of cotton from Shahdadpur sold at Rs 6400 and 200 bales from Bahawalpur at Rs 6350, they said.
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The KCA Official Spot Rate for Local Dealings in Pak Rupees
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FOR BASE GRADE 3 STAPLE LENGTH 1-1/32"
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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 24.06.2013
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37.324 Kgs 6,400 155 6,555 6,555 NIL
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Equivalent
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40 Kgs 6,859 155 7,014 7,014 NIL
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