Volume of business rises on strong demand

Volume of business improved on the cotton market on Wednesday owing to strong demand by mills and spinners, dealers said. The official spot rate was unchanged at Rs 6800, they said. In Punjab, prices of seed cotton were at Rs 3700-3800, as per 40 kg, they said.
In ready session, around 8000 bales of cotton changed hands between Rs 5900 and Rs 7000, they said. Market sources said that rising demand by mills and spinners helped the volume of business to improve from current levels. The mills and spinners lay hands over the deals to meet requirements and trying to purchase as much as they can due to short supply position.
Cotton analyst, Naseem Usman said that despite falling rates in New York and China, prices maintained firm posture due to short supply position. The ginners, who were reluctant in new deals, now preferred to make fresh selling as rates were matching with their psychological levels, he added. In the meantime, it is most likely that lack of irrigation water in Sindh and Balochistan may create a problem for cotton growers, other analysts said.
On Wednesday, the N Y cotton futures were sharply higher on strong demand and on the other hand prices were down in India and China, they said. The following deals reported: 643 bales of cotton from Bandhi at Rs 6700, 208 bales from Mirpur Mathero at Rs 6500, 1032 bales from Punjmoro at Rs 5900, 1000 bales from Sadiqabad at Rs 6800, 1600 bales from Liaquatpur at Rs 6800/6925, 800 bales from Haroonabad at Rs 6800/6975, 750 bales from Faqirwali at Rs 6900/6975, 600 bales from Rahim Yar Khan at Rs 7000 and 400 bales from Bahawalpur 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 21.03.2017

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37.324 kg         6,800       135        6,935         6,935            NIL

Equivalent

40 kgs            7,288       145        7,433         7,433            NIL

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