Prices extended overnight gains on the cotton market on Thursday in the process of trading, dealers said. As a result, the official spot rate maintained upward trend for the second day, gaining further Rs 50 to Rs 5250, dealers said. In the ready session, over 5,000 bales of cotton changed hands between Rs 5000 and Rs 5540, they said.
The prices of seed cotton in Sindh were up by Rs 100 to Rs 1900 and Rs 2500 and in Punjab rates were at Rs 2200 and Rs 3000, they said. Market sources said that spinners were busy in routine buying to cover their immediate needs. Cotton analyst, Naseem Usman said unsold stock is diminishing day by day, so that prices are on the upward march.
In the meantime, the ginners, who were facing financial problem due to high cost of production, now getting prices according to their psychological levels, he said.
According to the reports, Mali ended its 2014-2015 season with record production of 233,000 tonnes of cotton fibre versus 185,000 tonnes the previous year, the state-owned Malian Company for the Development of Textile (CMDT) said.
Reuters adds: Cotton futures rose for a fourth straight session to hit a six-week high on Wednesday as speculator money poured in after strong gains in recent days and two US government reports expected in the coming session.
The front-month May cotton contract on ICE Futures US gained 0.31 cent, or 0.5 percent, to settle at 66.73 cents a lb, after rising as high as 67.19 cents a lb, the highest for the front-month since February 23. Tuesday marked cotton's fourth consecutive day of gains, its longest such streak since late February.
The following deals reported: 600 bales of cotton from Dharki at Rs 5400, same figure from Chichawatni at Rs 5000, 2451 bales from Sadiqabad at Rs 5300, 200 bales from Khanewal at Rs 5500 and 1000 bales from Khanpur at Rs 5540, 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 08.04.2015
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37.324 Kgs 5,250 150 5,400 5,350 +50
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Equivalent
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40 Kgs 5,626 160 5,786 5,733 +53
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