Leading buyers adopted wait-and-see mood on the cotton market on Saturday in the process of slow trading activity, dealers said. The official spot rate was unchanged at Rs 6300, dealers said. In Sindh, seed cotton prices were at Rs 2600-3250, they said that in Punjab, phutti rates were at Rs 2800 and Rs 3500, as per 40 kg, they added. In the ready session, around 5,000 bales of cotton changed hands between Rs 5900-6550, they said.
Market sources said that leading mills and spinners kept on the sidelines ahead of the Pakistan Cotton Ginners Association (PCGA) fortnightly report and partly because of quality factor. Cotton analyst, Naseem Usman said that confusions persisted over the import of Indian cotton, because there is no proper and clear cut government policy over the issue.
Besides, said factor is also keeping the textile industry in a confusing poison, other brokers said. China imported 54,900 tonnes of cotton in November, down 35 percent year-on-year, the China Cotton Association said on its website on Friday. China has imported 750,900 tonnes of cotton in the first 11 months of the year, down 42 percent from last year, the data showed.
Reuters adds: ICE cotton futures registered the biggest one-day percentage loss in more than two weeks in thin trading, but the natural fibre also marked its first weekly gain in four weeks. March cotton contract on ICE Futures US settled down 0.63 cent, or 0.88 percent, its biggest one-day percentage fall since December 1, at 71.04 cents per lb. It traded within a range of 70.9 and 71.69 cents a lb.
The following deals reported: 400 bales from Sanghar sold at Rs 5900, 1000 bales from Dharki at Rs 6550, 600 bales from Khanpur at the same rate, 600 bales from Rahim Yar Khan at Rs 6450, 800 bales from Bahawalpur at Rs 6300, same figure from Khanewal at the same price and 400 bales from Layyah at Rs 6250, 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 16-12-2016
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37.324 kg 6,300 135 6,435 6,435 NIL
Equivalent
40 kgs 6,752 145 6,897 6,897 NIL
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