Persistent demand boosted the rates on the cotton market on Thursday after some encouraging news coming up regarding relief package and fresh rains and snow fall in the Punjab cotton producing areas, dealers said. Resulting, the official spot rate was higher by Rs 50 to Rs 5250, dealers said. In Sindh, seed cotton prices were higher by Rs 100 to Rs 2700 and fine type was higher by Rs 200 to Rs 3000 and in Punjab prices gained Rs 200 to Rs 2800 and Rs 3100, they said.
In the ready business, over 15,000 bales of cotton changed hands between Rs 4800 and Rs 5500, they said. According to the market sources, cotton traders or textile sector demanding concessions for doing business smoothly. Textile industry has lost its viability against regional competition on account of high production cost, besides, 30 percent industry is already closed and over 20 percent exports have declined in September.
Now again traders were hoping for a friendly relief package by the government in the near future. Cotton analyst, Naseem Usman said that fresh rains in Punjab may damage quality of cotton and likely to push the rates of fine quality further higher.
Reuters adds: ICE cotton dipped on Wednesday after hovering near one-month highs hit the prior session as data showed strong US harvest progress despite difficulties in storm-battered regions. Data released Wednesday morning showed imports from China, the world's leading consumer of cotton, were down 42 percent from the prior year, according to the China Cotton Association.
December cotton on ICE Futures US settled down by 0.1 cent on Wednesday, a 0.2 percent loss, at 63.76 cents per pound. It traded within a range of 63.41 and 64.08 cents a pound. The following deals reported: 600 bales of cotton from Tando Adam at Rs 4800-4850, 800 bales from Sanghar at Rs 4800-4875, 400 bales from Kotri at Rs 4850, 200 bales from Vindar at Rs 5250, 600 bales from Moro at Rs 5300, 3500 bales from Khairpur at Rs 5350-5450, 3000 bales from Upper Sindh at Rs 5400-5500, 600 bales from Burewala at Rs 5200, 400 bales from Mian Chano at Rs 5300, 400 bales from Hasilpur at Rs 5300-5400, 400 bales from Duniyapur at Rs 5350, 400 bales from Faqirwali at Rs 5450, 600 bales from Haroonabad at Rs 5450-5500, 1200 bales from Fazilpur at Rs 5500, 400 bales from Muhammadpur Dewan at Rs 5500, 400 bales from Fort Abbas at Rs 5500, 600 bales from Dera Ghazi Khan at Rs 5500, 400 bales from Liaquatpur at Rs 5500 and 400 bales from Ahmedpur at Rs 5500, 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 14-10-2015
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37.324 Kgs 5,250 135 5,385 5,335 +50
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Equivalent
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40 Kgs 5,626 145 5,771 5,718 +53
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