Prices fell modestly on the cotton market on Thursday as most of the leading buyers kept on the sidelines due to several factors, dealers said. The official spot rate was down by Rs 50 to Rs 6200, dealers said. In Sindh, seed cotton prices were at Rs 2600-3250, they said. In Punjab, phutti rates were at Rs 2800 and Rs 3500, as per 40 kg, they added. In the ready session, around 15,000 bales of cotton changed hands between Rs 5600 and Rs 6450, they said.
Market sources said that wait-and-see mood prevailed as mills and spinners were on the sidelines owingg to lack of buying interest. Cotton analyst, Naseem Usman said that unsold stock of cotton yarn and decline in arrival of fine quality cotton are main factors behind the sluggish demand. Other brokers also said that slow demand in the international market is also playing a vital role behind the fall in prices in local markets.
Reuters adds: ICE cotton futures dipped on Wednesday, after touching a three-week high in the previous session, as the dollar gained in strength after the US Federal Reserve raised interest rates for the first time this year March cotton contract on ICE Futures US settled down 0.57 cent, or 0.79 percent, at 71.47 cents per lb. It traded within a range of 71.31 and 72.3 cents a lb.
The following deals reported: 400 bales from Shahdadpur sold at Rs 5600, 3000 bales from Sanghar at Rs 5900/6200, 412 bales from Masqsoodo at Rs 5965, 2000 bales from Rohri at Rs 6300, 2000 bales from Salehpat at Rs 6300, 1400 bales from Mianwali at Rs 6000, 600 bales from Khanewal at Rs 6300/6365, 1600 bales from Yazman Mandi at Rs 6300/6450, 600 bales from Dharanwala at Rs 6325, 600 bales from Faqirwali at Rs 6350, 800 bales from Fort Abbas at Rs 6400, 2000 bales from Haroonabad at Rs 6400, 600 bales from Liaquatpur at Rs 6300/6365, 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 6,200 135 6,335 6,385 - 50
Equivalent
40 kgs 6,645 145 6,790 6,843 - 53
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