Cotton prices posted fresh gains on the local market on Monday in the process of improved business activity but with slight pace, dealers said. The official spot rate was higher by Rs 50 to Rs 6500, dealers said. In Sindh, seed cotton prices were up at Rs 3100-3400, they said. In Punjab, phutti rates were at Rs 3100 and Rs 3600, as per 40 kg, they added.
In the ready session, over 11,000 bales of cotton changed hands between Rs 6700 and Rs 7000, they said. Some brokers said that in fact undertone is still uncertain as some leading buyers and sellers were conspicuous by their absence. In the meantime, some needy buyers finalised deals at their psychological levels to meet urgent requirements, they added.
Besides, some other experts were of the view that after the announcement of exports relief package, the textile sector still under confusions because of delay in Statutory Regulatory Orders (SRO) for implementing the package was being awaited.
Cotton analyst, Naseem Usman said that one factor, which come up was increase in rates of cotton yarn but at the same time, value-added textile goods failed to show any improvement. At present, local cotton business is crisis liked situation owing to several issues, he added.
According to reports, cotton supplies in Indian spot markets fell 15.9 percent from a year earlier to 10.8 million bales between October and December as government's move to scrap high-value currency notes disrupted trading.
The world's biggest cotton producer is likely to harvest 34.1 million bales of cotton in the 2016/17 season, that started on October 1, down 1.1 percent from an earlier estimate, the Cotton Association of India said in a statement. India had harvested 33.8 million bales in 2015/16.
The following deals reported: 600 bales of cotton from Ahmedpur East at Rs 6700, 8085 bales from Khanpur at Rs 7000 (conditional), 2200 bales from Rahim Yar Khan at Rs 6750 and 400 bales from Haroonabad at Rs 6550, 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 1-1/16"
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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 Expenses Ex-Karachi Ex. KHI, As Ex-Karachi
on 21-01-2017 in Rupees
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37.324 kg 6,500 135 6,635 6,585 + 50
Equivalent
40 kgs 6,966 145 7,111 7,057 + 54
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