Firmness prevailed on the cotton market on Tuesday in the process of sluggish business, dealers said. The official spot rate was unchanged at Rs 6500, dealers said. In Sindh, seed cotton prices were at Rs 3100-3450, they said. In Punjab, phutti rates were at Rs 3100 and Rs 3650, as per 40 kg, they added.
In the ready session, over 3,000 bales of cotton changed hands between Rs 6400 and Rs 6750, they said. Cotton traders welcomed issuance of the SRO and hoping for better outcome of incentives given to revive the textile sector, experts said.
According to reports, about Rs.162 billion for the development of textile sector was a big achievement for Ministry of Textile in years 2016. It further said that textile sector has got Rs.162 billion from Rs.180 billion 'Trade Enhancement Package' announced by Prime Minister Muhammad Nawaz Sharif for coming 18 months from January 2017 to June 2018 to enhance the country's export.
Cotton analyst, Naseem Usman said that it is very much likely that exports of textile items may improve in the coming days.
Adds Reuters: ICE cotton futures jumped more than 2 percent on Monday to a more than two-week high, supported by buying by mills and a weaker US dollar.
The March cotton contract on ICE Futures US hit a high of 74.94 cents a lb during the session, a peak since Jan. 5. It also recorded the biggest daily percentage gain since Jan. 4.
The market was reacting to the large mill on-call sales commitments, a weaker US dollar and tightness in supply from India, said Louis Rose, an independent cotton trader and consultant with Risk Analytics in Memphis.
The following deals reported: 400 bales of cotton from Ghambat at Rs 6400, 600 bales from Chani Ghot at Rs 6750, 1200 bales from Rahim Yar Khan at Rs 6750 and 400 bales from Lodhran 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 1-1/16"
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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 Expenses Ex-Karachi Ex. KHI, As Ex-Karachi
on 23-01-2017 in Rupees
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37.324 kg 6,500 135 6,635 6,635 NIL
Equivalent
40 kgs 6,966 145 7,111 7,111 NIL
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