Not a single deal was reported on the cotton market on Friday as buyers and sellers were away from the arena, dealers said. The official spot rate was unchanged at Rs 7,500, they added. Prices of seed cotton in Sindh were available at Rs 3850-4150, in the Punjab, the seed cotton rates were at Rs 3700-3900, they said.
Commenting on the slow pace of cotton arrival in Sindh, cotton analyst Naseem Usman said that below Sanghar area may not achieve desired cotton production during the season because of heat weather and shortage of irrigation water. He said that Sanghar produces major part of country's total cotton but this year likely to lose 4-5 lacks bales of cotton.
Other brokers said that there was a kind of dullness in the market after observing Eid holidays, mainly because of oversold position attained by many sellers.
Adds Reuters: ICE cotton futures settled up in narrow range trading on Thursday, as investors remained cautious after a sharp sell-off earlier in the week amid worries of a trade war between the United States and China - the world's biggest cotton exporter and top consumer, respectively.
The most active cotton contract on ICE Futures US, the third-month December contract, settled up 0.11 cent, or 0.13 percent, at 84.29 cents per lb. It traded within a range of 84.13 and 85.14 cents a lb.
The market is trying to find a new level of support after it dropped off pretty sharply earlier this week, analysts said, adding people are waiting to see what happens next in the trade dispute between United States and China.
Following deals of new crop were reported: 1200 bales of cotton from Shahdadpur, Mirpurkhas, Sanghar and Tando Adam sold at Rs 8000-8100, 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 1-1/16"
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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 21-06-2018
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37.324 kg 7,500 145 7,645 7,645 NIL
Equivalent
40 kgs 8,038 155 8,193 8,193 NIL
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