Prices of seed cotton went up on the cotton market on Friday due to diminishing stock with the passage of time, dealers said. The official spot rate was unchanged at Rs 5,250, dealers said. In Sindh, seed cotton prices were at Rs 2000-2200, and in Punjab prices at Rs 2500 and Rs 2900, they said.
In the ready business, over 4000 bales of cotton changed bands between Rs 45100 and 5400 in the process of trade activity, they said. According to the market sources, volume of business showing restricted participation by the leading buyers. In fact, global factor coupled with domestic issues, disturbing the textile industry, resulting activity is not picking up for the last several sessions, some experts said.
Supply of quality lint and higher demand were not allowing buyers and sellers to come on meeting ground in a big way, they observed. Additionally, very little number of unpicked cotton is left behind the field, so that only 40 to 50 ginneries are operating, they said.
Reuters adds: Cotton futures recovered from a more than 6-1/2-year low on Thursday, helped by a weaker dollar and a strong weekly US export report. A government report, which showed a 7 percent rise in export sales of upland cotton in the week ended March 3, was "somewhat bullish," said Rogers Varner, president of Varner Brokerage in Cleveland, Mississippi.
The May contract on ICE Futures US settled up 0.24 cent, or 0.42 percent, at 56.83 cents per lb, after falling as low as 55.66 cents a lb, the lowest price for the front-month since 2009. The following deals reported: 1200 bales of cotton from Mehrabpur sold at Rs 5100, 400 bales from Khanpur at Rs 5400, 1400 bales from Rahim Yar Khan at Rs 5400, 600 bales from Haroonabad at Rs 5300 and 600 bales from Layyah at Rs 5350, 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 10-03-2016
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37.324 kg 5,250 135 5,385 5,385 NIL
Equivalent
40 kgs 5,626 145 5,771 5,771 NIL
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