Seed cotton prices mixed on slow trade activity

Prices of seed cotton move both ways on the cotton market on Monday in the process of modest trading, dealers said. The official spot rate was unchanged at Rs 5,250, dealers said. In Sindh, low type of seed cotton prices were down by Rs 400 to Rs 1800 and the fine quality was lower by Rs 100 to Rs 2900 and in the Punjab, rates, however, gained Rs 100 to Rs 2300 and Rs 3200, they said.
In the ready business, over 2000 bales of cotton changed hands between Rs 5125 and Rs 5600, they said. Market sources said that business activity was picking up due to slow buying interest among the main participants. Cotton analyst, Naseem Usman said attendance in the Hemtextil may be thin this year due to slow business of textile items. He said that despite lower-than-expected crop issued in the fortnightly report by the Pakistan Cotton Ginners Association (PCGA), no change was seen in the present outlook.
Report showed that Turkmenistan, one of the top 10 cotton producers in the world, produced 1.100 million tonnes of raw cotton in 2015, compared with 1.113 million tonnes a year earlier, state cotton firm Turkmenpagta said. The Central Asian nation exports less than a half of its cotton output, processing the rest domestically.
The following deals finalised: 200 bales from Dadu at Rs 5125, 400 bales from Ranipur at Rs 5300, 200 bales from Tharo Shah at Rs 5375, 200 bales from Maroot at Rs 5500, 200 bales from Fort Abbas at Rs 5500, 400 bales from Mianwali at Rs 5500-5550 and 600 bales from Rahim Yar Khan at Rs 5600.

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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 02-01-2016

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37.324 kg         5,250       135         5,385        5,385            NIL

Equivalent

40 kgs            5,626       145         5,771        5,771            NIL

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