Renewed buying by mills and spinners propelled the ginners to raise asking prices in the process of trading, dealers said on the cotton market on Saturday. The official spot rate was unchanged at Rs 4700, dealers said. In the ready session, trading activity improved slightly, as over 8,000 bales of cotton changed hands between Rs 4000 and Rs 5000, they said.
The seed cotton rates in Sindh at Rs 1600 and Rs 2300, in Punjab prices were at Rs 1700 and Rs 2500, they said. Some brokers said that leading mills and spinners were covering their requirements in expectations of increase in demand in times to come. In the meantime, cotton analyst, Naseem Usman said that fall in oil prices, which is continue, causing a sharp decline in the polyester fibre and this factor is causing financial losses and uncertainties, as well.
Reuters adds: Cotton futures eased on Friday, giving back a sliver of the week's gains on profit-taking and book-squaring at the month's end. The most-active December cotton contract on ICE Futures US closed down 0.21 cent, or 0.4 percent, at 59.36 cents a lb.
The US dollar's recent gains against other currencies have weighed on dollar-traded commodities, as it makes them more expensive to holders of other currencies. That and bullish expectations of another week of strong US Department of Agriculture export sales data lifted fiber prices this week.
The following deals reported: 800 bales of cotton from Shahdadpur at Rs 4000-4600, 2600 bales from Sanghar at Rs 4300, 400 bales from Rasolabad at Rs 4600, same figure from Gambat at Rs 4700, 800 bales from Kumb at the same rate, 200 bales from Vehari at Rs 4400, 400 bales from Fort Abbas at Rs 4600, 200 bales from Ahmedpur at Rs 4700, 400 bales from Shujaabad at Rs 4750, 200 bales from Multan, 400 bales from Layyah all done at the same rate, same figure from Tonsa Sharif at Rs 4800, 600 bales from Mianwali at Rs 4775-4950, same figure from Rahimyar Khan at Rs 4900 and same figure from Khanpur at Rs 5000, they added.
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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 1-1/32"
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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 30.01.2015
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37.324 Kgs 4,700 150 4,850 4,850 Nil
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Equivalent
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40 Kgs 5,037 160 5,197 5,197 Nil
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