Strong mills' buying pushing the rates at high on the cotton market on Saturday, dealers said. Resulting, the official spot rate maintained an upward trend, gaining more Rs 100 to Rs 5400, dealers said. In Sindh, seed cotton prices were up by Rs 100 to Rs 2600 and Rs 3100 and in Punjab rates also moved up by Rs 100 to Rs 2800 and Rs 3200, they said. In the ready business, over 18,000 bales of cotton changed hands between Rs 4875 and Rs 5750, they said.
According to the market sources, in the absence of fresh leads, almost all cotton traders were facing a kind of anxiety. Short supply is causing continued rise in the prices, besides, country has to import nearly 25 lacs of bales of cotton from India, South Africa and USA to meet demand, cotton analyst, Naseem Usman said. Other experts said that the spinners have welcomed the decision of 10 percent rise in regulatory duty on the import of cotton yarn from November 1, 2015.
Reuters adds: ICE cotton futures rose on Friday, helping the fibre close out its biggest weekly gain in two months, as producers and merchants hesitated to make forward sales of high-grade cotton as uncertainty lingered about crop quality. Cotton contracts for December settled up by 0.41 cent on Friday, a 0.6 percent gain, to 63.85 cents per pound. It traded within a range of 62.87 and 63.95 cents a pound. It ended the week up 3.6 percent, its biggest weekly gain since the week ended August 14.
US export sales for the prior week totalled 67,300 bales, down 68 percent from the prior week and 47 percent from the prior 4-week average, according to US government data released Friday morning. The following deals reported: 400 bales from Jhole at Rs 4875, 800 bales from Sanghar at Rs 4900, 1000 bales from Mirpurkhas at Rs 4900-5000, 1200 bales from Shahdadpur at the same rate, 800 bales from Nawabshah at Rs 5400, 400 bales from Kazi Ahmed, 600 bales from Moro at the same rate, 400 bales from Vindar at Rs 5550, 2500 bales from Khairpur at Rs 5500, 3000 bales from Upper Sindh at Rs 4700-5600, 400 bales from Chichawatni at Rs 5300, 400 bales from Khanewal at Rs 5500, same figure from Ahmedpur at Rs 5550, 1200 bales from Rajanpur at Rs 5600, same figure from Fazilpur at the same price, 1400 bales from Dera Gazi Khan at Rs 5600-5750, 1000 bales from Mianwali at Rs 5700, 200 bales from Mohammadpur Dewan at the same rate and 800 bales from Layyah at Rs 5750, 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 16-10-2015
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37.324 kg 5,400 135 5,535 5,435 +100
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Equivalent
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40 Kgs 5,787 145 5,932 5,825 +107
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