Prices maintained firm posture on the cotton market on Saturday ahead of Eid-ul-Azha holidays, dealers said. The official spot rate maintained overnight level at Rs 4,700, dealers said. In Sindh seed cotton prices were at Rs 2350 and Rs 2400 and in Punjab prices were at Rs 2300 and Rs 2500, they said.
In the ready business, around 12,000 bales of cotton changed hands between Rs 4650 and Rs 5000, they said. Cotton analyst, Naseem Usman said that despite sharp decline in business activity prices held the overnight levels. In the meantime, it looks that the mills and spinners may take interest in fresh buying after Eid holidays, he added.
Other analysts were of the view that many buyers have bought enough for the coming days during the last sessions. They said that rising fears about damage of crop and lower-than-expected slide in production propelled mills and spinners to make forward buying.
Adds Reuters: ICE cotton futures tumbled in heavy volume on Friday to their lowest levels in 7-1/2 months after the US central bank's decision to hold interest rates near zero stoked concern about economic growth in the world's leading cotton-consuming countries.
With the session's sharp move lower, fibre broke out of a thin trading range it had been stuck in for three weeks. The December contract finished the week down 5 percent, and settled Friday just slightly above the March contract, after trading at a premium to it for nearly six weeks. The December frequently traded at a discount to March during the session, threatening the end of a market condition known as backwardation, in which nearby contracts trade higher than forward prices, which is seen as a sign of tight supplies.
The following deals reported: 800 bales from Mirpurkhas at Rs 4650-4675, 1000 bales from Sanghar at Rs 4650-4700, 600 bales from Hyderabad at Rs 4675, 1000 bales from Shahdadpur at Rs 4700, same figure from Tando Adam, 400 bales from Nooriabad all done at the same rate, 800 bales from Nawabshah at Rs 4775, 400 bales from Moro at Rs 4800, same number from Chichawatni at Rs 4850, 400 bales from Burewala, 200 bales from Maroot, 200 bales from Tonsa Sharif all finalised at the same levels, 200 bales from Jhang at Rs 4875, 600 bales from Hasilpur at Rs 4900, 400 bales from Mianwali, same number from Rajanpur at the same level, 200 bales from Chistian at Rs 4925, same figure from DG Khan, 400 bales from Layyah all done at the same rate, 400 bales from Khanewal at Rs 4975, same figure from Mian Chano at the same rate and 200 bales from Kabirwala at Rs 5000, 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 18.09.2015
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37.324 Kgs 4,700 135 4,835 4,835 NIL
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Equivalent
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40 Kgs 5,037 145 5,182 5,182 NIL
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