Some mills were active on the cotton market to cover the immediate needs, dealers said on Saturday. The official spot rate was unchanged at Rs 6,550, they added. Prices of seed cotton in Sindh and Punjab per 40 kg were unchanged at Rs 2800 and Rs 3100, dealers said. In the ready session, over 1000 bales of cotton changed hands between Rs 5900-6500, dealers said.
According to the market sources, mills and spinners were looking some active to cover the urgent needs. They said that cotton traders were hoping that the government may take measures to protest the domestic market. A huge stock of unsold cotton yarn is creating an unforeseen fear among the business circle due to financial losses, cotton analyst, Naseem Usman said.
Reuters adds: Cotton futures rallied on Friday and notched their first daily gain this week, fuelled by a strong US jobs report, buy-stops and expectations of mill buying under the market. The most-active May cotton contract on ICE Futures US closed up 1.42 cents, or 1.6 percent, at 92.40 cents a lb. Fibre extended gains after a US jobs report showed employers hired at a brisk pace in March, an upbeat sign of the health of the world's largest economy and for demand for consumer goods, including apparel. Prices surged as they hit buy signals as they climbed past key moving averages. The following deals were reported: 400 bales from Fort Abass at Rs 5900-6250, 357 bales form Burewala at Rs 6325, 400 bales from the same station at Rs 6500 and 200 bales from Khanewal at Rs 6150, 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 04.04.2014
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37.324 Kgs 6,550 155 6,705 6,705 NIL
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Equivalent
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40 Kgs 7,020 155 7,175 7,175 NIL
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