Fresh buying interest among the mills and spinners seen on the cotton market on Tuesday, which helped to improve the volume of business, dealers said. The official spot rate was down by Rs 50 to Rs 5400, dealers said. In the ready session, around 2000 bales of cotton finalised between Rs 4400 and Rs 5600, they said. Seed cotton prices in Sindh were same at Rs 2600-2700 and in Punjab rates were at Rs 2800 and Rs 2900, they said.
Cotton analyst, Naseem Usman said that new cotton crop (2015-15) have started reaching at the ginneries, propelling buyers to adopt wait-and-see mood. Some of them showed fresh interest to purchase both new and old types, which match with their psychological levels, he added. Most of the buyers were worried causing because of rising uncertainties over the Gas Infrastructure Development Cess (GIDC), other brokers said.
ICE cotton futures fell to their lowest in nearly two months on Monday as the December contract's close below major moving averages on Friday sent bearish technical signals and moves below recent lows triggered automatic sell-stops. December cotton on ICE Futures US settled down by 1.03 cent on Monday, a 1.6 percent loss, at 63.63 cents per pound, after falling as low as 63.37 cents a lb, its lowest since April 22.
The cash to second-month spread gained 0.49 cent to 1.37 cents per pound. Total futures market volume rose by 7,332 to 45,412 lots. Data showed total open interest fell 4,413 to 175,356 contracts in the previous session. The following deal reported, 1000 bales of cotton from Shahdadpur at Rs 4400, 400 bales from same station done at Rs 4900, 200 bales of cotton from Burewala at Rs 5600 and 200 bales (crop 2015-16) from Matiari at Rs 5300, they said.
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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 15.06.2015
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37.324 Kgs 5,400 150 5,550 5,600 -50
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Equivalent
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40 Kgs 5,787 160 5,947 6,001 -54
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