A kind of confusions and uncertainties prevailed on the cotton market, regarding conditional import of cotton from India, dealers said on Thursday. The official spot rate was up by Rs 50 to Rs 6300, dealers said. In Sindh, seed cotton prices were at Rs 2600-3250, they said that in Punjab, phutti rates were at Rs 2800 and Rs 3500, as per 40 kg, they added.
In the ready session, over 20,000 bales of cotton changed hands between Rs 5950-6600, they said. According to the market sources, import of cotton from India is causing jitters among cotton traders and creating uncertainties for the industry, as well.
In the meantime, active mills' buying was witnessed as spinners kept replenishing their stocks at the higher level on fears of short crop and price hike, other experts said. Cotton analyst, Naseem Usman said that short-fall in supply of lint cotton is expected, so both spinners and some exporters entered the market, which helped rates to retain firm levels.
Under the circumstances, the spinners were facing problems because growers were holding back their phutti in order to get better profit, other brokers said. In the meantime, government and industry officials told Reuters that Pakistan has resumed cotton imports from its top supplier India after suspending them for few days.
Reuters adds: Cotton futures settled marginally lower on Wednesday, hurt by weaker demand for the natural fibre in India. The March cotton contract on ICE Futures US settled down 0.28 cent, or 0.39 percent, at 71.05 cents per lb. It traded within a range of 70.45 to 71.5 cents a lb. Total futures market volume rose by 4,135 to 15,739 lots. Data showed total open interest gained by 428 to 251,402 contracts in the previous session.
The following deals reported: 2400 bales from Khairpur at Rs 6200/6250, 800 bales from Salehpat at Rs 6300/6350, 600 bales from Rohri at Rs 6350, 600 bales from Ghotki at Rs 6500, 2400 bales from Mianwali at Rs 5950/6000, 1000 bales from Layyah at Rs 6000/6300, 1200 bales from Burewala at Rs 6250, 400 bales from Lodhran at Rs 6350, 600 bales from Khanewal at Rs 6400, 1400 bales from Jalalpur at Rs 6425, 1600 bales from Shujabad at Rs 6400/6550, 800 bales from Rahim Yar Khan at Rs 6500, 800 bales from Sadiqabad at Rs 6500, 600 bales from Rajanpur at Rs 6550, 1600 bales from Ahmedpur at Rs 6600 and 1200 bales from Mianchano at Rs 6600, 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 07-12-2016
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37.324 kg 6,300 135 6,435 6,385 + 50
Equivalent
40 kgs 6,752 145 6,897 6,843 + 54
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