Listless trading activity was witnessed on the cotton market on Friday in the process of trading, dealers said. The official spot rate was lower by Rs 50 to Rs 6700, they said. In ready session, only 600 bales of cotton from Burewal done at Rs 6900, they said. According to market sources attributed the fall in volume of business to spinners' lack of buying interest.
On the other hand, the ginners were keen to dispose of old stock owing to quality factor, but the mills showed no interest in purchasing due to quality factor. Cotton analyst, Naseem Usman said that mills still need to cover substantial quality of cotton to meet current season's demand. He also said that shortage of irrigation water likely to cause delay sowing and damage of crop, this factor is also affecting Kharif crops. Some experts said the country may face Kharif crops shortage in the coming days.
At the same time, country is unlikely to achieve wheat production target of 26.01 million tons for 216-17 as the crop in rain fed areas has badly suffered at germination stage because of drought conditions. According to satellite based wheat crop situation and forecast released by Pakistan Space and Upper Atmosphere Research Commission (SUPARCO) as a result of inadequate rains up to 25 to 35 percent reduction in wheat produce is expected in rain fed areas of the country.
Reuter adds: ICE cotton futures inched higher on Thursday, after settling lower for three straight sessions, ahead of the US Department of Agriculture's (USDA) prospective plantings report on Friday. The May cotton contract on ICE Futures US revisited a session low of 76.10 cents, after marking a one-month low at the same level on Wednesday.
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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 1-1/16"
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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 30.03.2017
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37.324 kg 6,700 135 6,835 6,885 - 50/-
Equivalent
40 kgs 7,180 145 7,325 7,379 - 54/-
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