A listless business was seen on the cotton market on Thursday as buyers were on the sidelines ahead of federal budget 2016-17, dealers said.
The official spot rate was unchanged at Rs 5,600, dealers said. In Sindh, seed cotton prices were at Rs 3000-3200, they said. In ready session, not a single deal was finalised as buyers were conspicuous by their absence, they said.
Cotton analyst, Naseem Usman said that leading participants were keen to hear positive measures in the announcement of budget 2016-17.
He also said that this year sowing was cut down by 15-20 percent due to predictions for heavy rains in the cotton belt.
Cotton traders held meetings with the financial minister and discussed several problems and issues, facing by them, other experts said.
Reuters adds: Cotton futures fell more than one percent, the most in nearly two-weeks, on Wednesday on profit-taking after the holiday weekend.
"Some of the new longs that had come into the market decided to exit them in the last two days," said Jim Lambert, Director of Sales at FCStone Merchant Services, LLC, adding that technicals indicate that the recent market rally has "run out of steam."
Cotton contracts for July settled down 0.77 cent, or 1.20 percent, at 63.17 cents per lb. It traded within a range of 62.94 and 64.08 cents a lb.
Total futures market volume rose by 2,352 to 31,661 lots. Data showed total open interest gained 1,592 to 202,777 contracts in the previous session.
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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 01-06-2016
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37.324 kg 5,600 135 5,735 5,735 NIL
Equivalent
40 kgs 6,002 145 6,147 6,147 NIL
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