Volume of business dropped on the cotton market on Saturday in line with the international track, dealers said. The official spot rate was unmoved at Rs 6650, they said. In Sindh, seed cotton prices were modestly higher by Rs 100 to Rs 3300-3500, they said. In Punjab, phutti rates were at Rs 3000 and Rs 3800, as per 40 kg, they added.
In the ready session, only one deal of 900 bales of cotton from Sanghar reported Rs 5500, they said. Some brokers said that after the Pakistan Cotton Ginners Association (PCGA) and sharp fall in the New York cotton futures, most of the leading buyers kept on the sidelines due to lack of buying interest. The PCGA issued it's fortnightly report till February 15 at 10.68 million bales, showing an increase of 10.30 percent compared to corresponding period last year.
Cotton analyst, Naseem Usman said that there was a slump in the world, which influenced the local market, as well. He said that fears of short crop in India forced spinners to import around 7000,000 bales of cotton. Other analysts observed that small spinners having no option to import cotton due to financial constraints. The NY cotton futures were sharply lower on Friday.
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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 17-02-2017 in Rupees
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37.324 kg 6,650 135 6,785 6,785 NIL
Equivalent
40 kgs 7,127 145 7,272 7,272 NIL
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