Trade activity failed to pick up in the absence of buying interest on the cotton market on Friday, dealers said. The official spot rate was unchanged at Rs 6750, they said. In Punjab prices of seed cotton were unchanged at Rs 3750-3800, as per 40 kg, they said.
In ready session, nearly 1600 bales of cotton sold at Rs 6700-7000, they said. Commenting on the slow business, cotton analyst, Naseem Usman said that thin business was witnessed because of dwindling stocks in the country and shortage of quantity cotton. He also said that the spinners kept booking for quality lint but mostly failed due to limited stock with ginners. Only small-lot deals were reported.
Naseem Usman also reported that in Thatta and Badin are facing shortage of water, so it is most likely that cultivation of cotton crop may face the same situation in coming season (2017-18). Therefore, it could be suppose that growth of cotton will be impaired in Sindh due to shortage of water.
Naseem Usman was of the view that the attention of the agriculture department and the Seed Corporation in Punjab to provide ample supply of water regularly and also arrange for the proper supply and distribution of seed to enable the farmers to grow high quality of cotton during the incoming season (2017/18). Besides, the supply of authenticated cotton-seeds, the supply of proper kind of pesticide should also he ensured. According to the weekly report of United States Department of Agriculture (USDA) cotton exports picked up 27 percent against the last week.
Reuters adds: The New York cotton futures were higher on Thursday. The following deals reported: 400 bales of cotton from Bakkur sold at Rs 6700, 600 bales from Khanewal at Rs 6800 and same figure from Khanpur at Rs 7000, 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 16.03.2017
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37.324 kg 6,750 135 6,885 6,885 NIL
Equivalent
40 kgs 7,234 145 7,379 7,379 NIL
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