Seed cotton arrivals curtained by fresh rains in the country, pushed prices modestly up on the cotton market on Saturday, dealers said. The official spot rate managed to hold overnight level at Rs 5,600, they added. In the session, some 10,000 bales of cotton changed hands between Rs 5600 and 5750, they said. In Sindh, rates of seed cotton moved up by Rs 50 to Rs 2550 and Rs 2650, however, in Punjab prices came down sharply at Rs 2300 and Rs 2650, they said.
Some analysts were of the opinion that prices of fine variety, which are very little in quantity, may go up sharply in times to come. If rains prolonged in the cotton belt, it is feared that prices of cotton to rise sharply, floods may cause to the standing crop, they said. On the other hand, unforeseen uncertainties increasing with the passage of time, creating fears among traders because cost of doing business under the circumstances is very difficult, they said. Cotton analyst, Naseem Usman said that country is already facing a lot of challenges, so it expected that authorities will try to control the situation, caused by rains and floods in the country.
Reuters adds: Cotton futures sank in heavy volumes on Friday under pressure from a disappointing weekly US government export report. The most-active December cotton contract on ICE Futures US closed down 1.14 cents, or 1.7 percent, at 64.31 cents a lb. Fiber extended losses after a US jobs report disappointed and after weekly US Agriculture Department (USDA) data showed a sharper drop in sales booked against the 2014-15 than many traders expected. Foreign buyers bought just 82,900 bales in the week ended August 28, the data showed, underscoring merchants' concerns about a slowdown in business in China as Beijing scraps stockpiling program in favour of crop subsidies.
The following deals reported: 600 bales of cotton from Hyderabad at Rs 5600, 1400 bales from Sanghar at Rs 5600, 400 bales from Kotri at Rs 5600, 400 bales from Shahpur Chakar at Rs 5600, 1200 bales from Tando Adam at Rs 5600-5650, 1400 bales from Mirpurkhas at Rs 5600-5625, 1800 bales from Shahdadpur at Rs 5625, 200 bales from Kazi Ahmed at Rs 5625, 600 bales from Nawabshah at Rs 5625, 200 bales from Jhang at Rs 5725, 400 bales from Burewala at Rs 5750, 400 bales from Chichawatni at Rs 5750, 200 bales from Lodhran at Rs 5750, 200 bales from Duniyapur at Rs 5800, 200 bales from Chinute at Rs 5800 and 200 bales from Mianwali at Rs 5800, 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 05.09.2014
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37.324 Kgs 5,600 150 5,750 5,750 Nil
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Equivalent
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40 Kgs 6,002 160 6,162 6,162 Nil
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