Tight supplies helped prices to maintain present levels on the cotton market on Monday in the process of trading, dealers said. The official spot rate was unchanged at Rs 7000, they said. In ready session, around 20,000 bales of cotton changed hands between Rs 6400-7500, they said.
In Sindh and Punjab, seed cotton prices were up by Rs 50 to same at Rs 2800-3500, as per 40 kg, they said. Market sources said that most of the leading buyers were on the sidelines due to tight supply position. Besides, they observed that severe cold weather could be a factor behind the slight fall in volume of business.
Cotton analyst, Naseem Usman said that the Pakistan Cotton Ginners Association (PCGA) has issued fortnightly seed cotton arrival figure till December 15 at about 10.7 million bales of cotton. He also said that total cotton production target may hit over 11 millions bales. In the meantime, other experts said that short supply position, the world over or further increase in the value of the dollar likely to push rates of cotton up in the coming days.
Adds Reuters: China 2017 cotton output reached 5.5 million tonnes, up 2.7 pct from a year earlier, China's National Bureau of Statistics said in a statement on Monday The following deals reported: 2000 bales of cotton from Khairpur at Rs 6850-7000, 1000 bales from Kandiaro at Rs 7000, same figure from Haroonabad at Rs 6700, same figure from Khanewal at Rs 7500, 2200 bales from Sadiqabad, 400 bales from Dera Gazi Khan and 4000 bales from Rahim Yar Khan all done at the same rate, 600 bales from Bhakhar at Rs 7000, 1600 bales from Fort Abbas at Rs 6800, 1000 bales from Bahawalpur at Rs 6700, 800 bales from Yazman Mandi at Rs 6700, 600 bales from Alipur at Rs 6400/6450, 600 bales from Mianwali at Rs 6400/6450, 1000 bales from Vehari at Rs 6500 and 400 bales from Chichawatni at Rs 6800, 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 16.12.2017
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37.324 kg 7,000 145 7,145 7,145 NIL
Equivalent
40 kgs 7,502 155 7,657 7,657 NIL
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