Cotton rates on upward march on the local cotton market on Saturday as the ginners were not ready to sell fine quality at current levels, dealers said. As a result, the official spot rate recovered further Rs 50 to Rs 6650, dealers said. In Sindh, seed cotton prices were at Rs 3100-3450, they said. In Punjab, phutti rates recovered slightly at Rs 3100 and Rs 3700, as per 40 kg, they added.
In the ready session, over 6,000 bales of cotton changed hands between Rs 5800 and Rs 7000, they said. Explaining the latest positive developments in textile circle, some experts said that after the issuance of statutory regulatory orders (SROs), traders were quite happy and looking satisfied about their doing business and cost of production, as well. Commenting on the policy rate, other analysts were of the view that the State Bank of Pakistan (SBP) has decided to keep the policy rate unchanged at 5.75 percent this would help in reviving confidence of investors in the coming days. Other analysts also said that the other adding factor is higher global prices which are also influencing the local market. Cotton analyst, Naseem Usman, under the circumstances, it appeared that prices to move ahead instead of coming down.
Adds Reuters: ICE cotton futures climbed nearly one percent to rise for the third session in a row in thin volume trade on Friday and the natural fibre market registered its best weekly performance in three weeks.
The March cotton contract on ICE Futures US ended the week up 2.5 percent, the best weekly growth since the week ended January 6.
The March cotton contract on ICE Futures US settled up 0.66 cent, or 0.89 percent, at 74.85 cents per lb. It traded within a range of 74.19 and 74.97 cents a lb.
The following deals reported: 212 bales from Maqsooda Rind sold at Rs 5800, 1200 bales from Mian Channu at Rs 7000, 600 bales from Dera Gazi Khan at Rs 6900, 484 bales from Alipur at 6800, 800 bales from Fort Abbas at Rs 6700, 400 bales from Burewala, 200 bales from Haroonabad all done at the same level and 1000 bales from Rahim Yar Khan at Rs 6950, 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 27-01-2017 in Rupees
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37.324 kg 6,650 135 6,785 6,735 + 50
Equivalent
40 kgs 7,127 145 7,272 7,218 + 54
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