Buyers on the sidelines to see fresh developments on cotton market

Further decline was seen in trading activity on the cotton market on Monday as major buyers kept on the sidelines to observe developments related to the textile sector, dealers said. Resulting, the official spot rate lost Rs 50 to Rs 6250, dealers said. In Sindh, seed cotton prices were at Rs 2600-3300, they said that in Punjab, phutti rates were at Rs 2800 and Rs 3550, as per 40 kg, they added.
In the ready session, over 6,000 bales of cotton changed hands between Rs 6175-6500, they said. Market sources said that confusions over import of cotton from India, fall in Cotton Crop Assessment Committee (CCAC) estimate for the current season, problem could not solve over import permit (IP) issue and other issues propelled them to away from the normal business.
Reports appeared that in the third meeting of Cotton Crop Assessment Committee (CCAC) was informed that Pakistan was expected the cotton production of 10.542 million bales (170kg). Besides, Pakistan Cotton Ginners Association (PCGA) has urged upon the government to grant a relief and bailout package to cotton growers and convince them to bring maximum area under cotton crop to make Pakistan self sufficient in cotton and to save more than Rs 30 to 40 billion being spent on the import of three million cotton bales.
Cotton analyst, Naseem Usman observed the CCAC's estimation is slightly up against the last year's figure at 9.95 million bales. Other experts said that what is the future of nearly, 70,000 bales of cotton lying at port last year country imported about 2.7 million bales from India. The All Pakistan Textile Mills Association (APTMA) urged the government to lift restrictions on import of cotton from India.
The following deals reported: 400 bales from Kandiyro at Rs 6175, 1200 bales from Salehpat at Rs 6335/6350, 1000 bales from Rohri at Rs 6335/6350, 600 bales from Khanpur Mehar at Rs 6500, 400 bales from Chichawatni at Rs 6225, 400 bales from Bahawalpur at Rs 6325, 800 bales from Dera Ghazi Khan at Rs 6450/6465, 400 bales from Ghazighat at Rs 6485, 600 bales from Sadiqabad at Rs 6500, dealers 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 03-12-2016

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37.324 kg          6,250      135         6,385       6,435             -50

Equivalent

40 kgs             6,698      145         6,843       6,897             -54

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