A kind of dullness again witnessed on the cotton market on Thursday as major buyers showed less interest in new deals in the absence of guiding leads, dealers said. The official spot rate was inert at Rs 5400, dealers said. In the ready session, over 1200 bales of cotton finalised between Rs 5300 and Rs 5500, they said. Seed cotton prices in Sindh were same at Rs 2500-2600 and in Punjab rates were at Rs 2700 and Rs 2800, they said.
Market sources said since seed cotton arrivals started, five ginning factories in Sindh and three ginning factories in Punjab have started operation. Cotton analyst, Naseem Usman said that some mills finalised deals to keep their vehicles on. But the dominating factor is lack of positive developments on both the economic and political fronts, he added.
Reuters adds: ICE cotton futures fell in light volume on Wednesday after a sharp rally the prior session, as extensive short-covering on Tuesday left fewer buyers in the market ahead of a weekly US export sales report due on Thursday. "They had levels at which they wanted to cover ahead of the report," said Louis Rose, independent cotton trader and analyst with Risk Analytics in Memphis, Tennessee, noting that he expected a strong report due to low prices and a weaker US dollar the prior week. "There wasn't that much left to do."
Cotton contracts for December settled down 0.45 cent on Wednesday, a 0.7 percent loss, at 64.52 cents per pound. It traded within a range of 64.16 and 65.16 cents a pound. Total futures market volume fell by 19,528 to 21,445 lots. Data showed total open interest fell 3,012 to 169,445 contracts in the previous session. The following deal reported, 1067 bales of cotton from Khanewal at Rs 5500 and 200 bales from Sanghar at Rs 5300, 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 1-1/32"
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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 17.06.2015
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37.324 Kgs 5,400 150 5,550 5,550 NIL
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Equivalent
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40 Kgs 5,787 160 5,947 6,947 NIL
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