Prices touched season's high on the cotton market on Thursday amid persistent demand for quality lint, dealers said. The official spot rate was unchanged at Rs 6450, dealers said. In Sindh, seed cotton prices were higher at Rs 3100-3350, they said. In Punjab, phutti rates were at Rs 3100 and Rs 3575, as per 40 kg, they added.
In the ready session, around 9,000 bales of cotton changed hands between Rs 6200 and Rs 6800, they said. Market sources said that sustained demand for quality cotton from spinners and exporters helped the rates to maintain present levels. Volume of business picked up but slightly as ginners were reluctant in selling of their stock, they observed.
Cotton analyst, Naseem Usman was of the view that buyers or spinners were interested in fresh deals but were not ready to pay above their psychological levels.
On the other hand, sellers were eager to get best prices, which is causing wide gap between demand and supply, he observed. Other experts said that it's a fact that there is a gap between consumption and production, which keeping spinners under pressure for source of future supply of cotton to keep their business run on.
According to reports, the National Tariff Commission (NTC) slapped provisional countervailing duty for four months on import of Indian fine cotton yarn.
Reuters adds: ICE cotton futures edged higher on Wednesday, after hitting a near two-week low in the previous session, as cautious trading ensured the market stayed within a tight range.
The March cotton contract on ICE Futures US settled up 0.15 cent, or 0.21 percent, at 72.26 cents per lb. It traded within a range of 72.02 and 72.55 cents a lb.
The following deals reported: 3000 bales from Sakrand at Rs 6200, 1000 bales from Haroonabad at Rs 6550/6575, 2000 bales from Bahawalpur at Rs 6600/6800, 1600 bales from Rahim Yar Khan at Rs 6600/6800, 200 bales from Noorpur Noranga at Rs 6750 and 1200 bales from Shehar Sultan at Rs 6600, 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 18-01-2017
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37.324 kg 6,450 135 6,585 6,585 NIL
Equivalent
40 kgs 6,912 145 7,057 7,057 NIL
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