Prices went up sharply on the cotton market on Thursday amid tight supply against strong demand, dealers said. The official spot rate was up by Rs 50 to Rs 4,650, dealers said. Seed cotton prices in Sindh were at Rs 2400 and Rs 2450 and in Punjab rates were at Rs 2300 and Rs 2450, they said. In the ready business, around 18,000 bales of cotton changed hands between Rs 4650 and Rs 4850, they said.
They said that due to strong demand, in the late a deal of 400 bales of cotton from Khanewal done at Rs 4900. Some experts said that another leading factor, behind the rise was uncertainty about the size of production. Besides, non-availability of transport during the pre and post holiday sessions was also a solid factor, which is inducing buyers to continue purchasing, cotton analyst, Naseem Usman said.
Reuters adds: ICE cotton fell during the settlement period on Wednesday but remained within the prior session's trading range in light volume as traders hesitated to take large positions ahead of the US government supply and demand report expected Friday. December cotton on ICE Futures US settled down by 0.36 cent on Wednesday, a 0.6 percent loss, at 62.92 cents per pound. It traded within a range of 62.86 and 63.63 cents a pound.
Total futures market volume fell by 6,196 to 10,484 lots. Data showed total open interest gained 661 to 179,675 contracts in the previous session. The following deals reported: 200 bales from Shahpur Chakar at Rs 4650, 1800 bales from Tando Adam at Rs 4650/4700, 1000 bales from Hyderabad at Rs 4700/4750, 1000 bales from Sanghar at Rs 4675/4700, 1000 bales from Mirpurkhas at Rs 4700, 1600 bales from Shahdadpur at Rs 4675/4725, 400 bales from Kotri at Rs 4700, 400 bales from Hala at Rs 4700, 2000 bales from Nawabshah at Rs 4700, 400 bales from Moro at Rs 4700, 1200 bales from Burewala at Rs 4750, 600 bales from Hasilpur at Rs 4750, 1000 bales from Vehari at Rs 4750/4850, 400 bales from Layyah at Rs 4775, 800 bales from Kabbirwala at Rs 4800, 1600 bales from Khanewal at Rs 4800/4850 and 400 bales from Tatapur at Rs 4825, dealers 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 09.09.2015
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37.324 Kgs 4,650 135 4,785 4,735 +50
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Equivalent
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40 Kgs 4,983 145 5,128 5,075 +53
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