In line with the international trend, cotton prices slid on the cotton market on Saturday in the process of trade activity, dealers said. The official spot rate was lower by Rs 50 to Rs 6000, dealers said. Phutti rates in Sindh were at Rs 2700-3150 and in Punjab prices of Phutti improved to Rs 3100-3250, as per 40 kg, they said.
In ready business, over 30,000 bales changed hands between Rs 5750-6300, they said. Market sources said that rise in production in the cotton producing countries causing decline in rates. Cotton analyst, Naseem Usman said that prices fell on falling demand globally. Other brokers said that leading mills and spinners purchased fine quality lint to replenish their stock. It is most likely that trade activity may fall as a result of expected decline in gas supply to several industries, particularly in Punjab.
Reuters adds: Cotton futures settled lower for the fourth straight session, falling about 1 percent, hurt by combination of a stronger dollar and harvest pressure in the United States. The December cotton contract on ICE Futures US hit a low of 68.61 cents a lb on Friday, a bottom since October 13, while also registering its biggest weekly decline in October having slid over 2 percent this week.
The following deals reported: 1000 bales from Tando Adam at Rs 5750/5900, 800 bales from Shahdadpur at the same rate, 600 bales from Maqsoodo at Rs 5950, 400 bales from Daur at Rs 6000, 1800 bales from Nawabshah at Rs 6000-6025, 3000 bales from Khairpur at Rs 6175-6200, 2000 bales from Rohri at Rs 6175-6225, same figure from Salehpat at the same rate, 200 bales from Kazi Ahmed at Rs 6200, same figure from Duniyapur at the same rate, 400 bales from Bureqala at the same rate, equal number from Fazilpur at Rs 6200-6250, 1400 bales from Layyah at Rs 6200-6270, 800 bales from Ahmedpur at Rs 6200-6300, 600 bales from Hasilpur at Rs 6225-6250, 800 bales from Bahawalpur, 600 bales from Chistian, 800 bales from Bahawal Nagar all done at the same rate, 600 bales from Yazman Mandi at Rs 6240, 800 bales from Sadiqabad at Rs 6250, equal number from Liaquatpur, 400 bales from Alipur, 200 bales from Mian Chano, 200 bales from Jahanian, 400 bales from Fort Abbas, 800 bales from Rajanpur, 1200 bales from Mianwali all finalised at the same price, 400 bales from Vehari at Rs 6250-6265, 1000 bales from Rahim Yar Khan at Rs 6250-6275, 1400 bales from Haroonabad done at the same rate, 200 bales from Jalalpur at Rs 6270 and same figure from Khanewal at Rs 6275, 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 21-10-2016
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37.324 kg 6,000 135 6,135 6,185 -50
Equivalent
40 kgs 6,430 145 6,575 6,629 -54
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