Prices remained steady on the cotton market on Thursday in the process of modest trading activity, dealers said. The official spot rate was unchanged at Rs 6750, they said. In Punjab, prices of seed cotton were at Rs 3700-3800, as per 40 kg, they said. In ready session, around 3000 bales of cotton changed hands between Rs 6875-7000, they said.
Market sources said that leading spinners were on the sidelines as they have booked deals to meet their near-term requirements. In the meantime, the ginners were interested in fresh selling owing to quality factor, they said.
The ginners were ready to oblige the spinners but on the present rates, they have only around 350,000 bales and are striving to sell them at a better price. However, new crop deal of Binola (cottonseed) from Sindh per maund done at Rs 1
800 for June 15 delivery, they said.
Besides, the United States Department of Agriculture (USDA) showed an increase of 20 percent in demand against last year.
Cotton analyst, Naseem Usman said and adding that acute water shortage in the interior Sindh likely to affect cotton sowing. It is feared that Kharif crops may face tough time because of shortage of water particularly cotton, other experts said.
Profit-taking was seen in the global markets as most of the traders have finalised deals at highest rates of the season and so that they were busy in making deals for better profits.
Reuter adds: ICE cotton futures fell 1 percent to their lowest in a month on Wednesday as traders remained wary and liquidated positions ahead of a federal crop plantations report later this week.
The May cotton contract on ICE Futures US settled 0.96 percent lower at 76.14 cents per lb after hitting 76.10 cents, the lowest since late February.
The May cotton contract on ICE Futures US settled down 0.74 cent, or 0.96 percent, at 76.14 cents per lb. It traded within a range of 76.10 and 77.08 cents a lb.
Total futures market volume rose by 1,286 to 28,490 lots. Data showed total open interest fell 274 to 281,653 contracts in the previous session.
The following deals reported: 400 bales of cotton from Jotoi at Rs 6875, 800 bales from Rahim Yar Khan, 1000 bales from Kabbirwala and 600 bales from Sadiquabad all done at Rs 7000, they 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 Ex-Karachi Ex. KHI. As Ex-Karachi
on 29.03.2017
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37.324 kg 6,750 135 6,885 6,885 NIL
Equivalent
40 kgs 7,234 145 7,379 7,379 NIL
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