Spinners indulged in fresh buying despite higher prices following the reports of short crop, dealers said on the cotton market on Friday. The official spot rate was unchanged at Rs 7,400, they added. In the ready session, over 2000 bales of cotton changed hands between Rs 6100-7700, they said.
The prices of seed cotton in Sindh were at Rs 3700-3800 per 40 kg, they said. According to the market sources, some spinners made buying to replenish their stocks.
Commenting on the latest position, they said that severe heat wave may propel growers to stop re-sowing in both Sindh and Punjab. Cotton analyst, Naseem Usman said recently the growers were facing difficulties due to non-availability of irrigation water for sowing, besides, heat wave damaged standing crop in the cotton belt. Many growers and farmers adopting wait-and-see mood owing to prevailing circumstances, they observed.
In the world markets, prices moved both ways during the season, they said. Reuters adds: ICE cotton futures rose on Thursday due to weather-related worries in the cotton-growing regions of the United States, and a day ahead of the release of the US Department of Agriculture's weekly export sales data.
The most active ICE cotton contract for December expiry settled up 0.79 cent, or 0.87 percent, at 91.64 cents per lb. It traded within a range of 89.98 to 92.20 cents a lb. The following deals were reported; 1116 bales of cotton from Khanpur sold at Rs 7300-7700, 400 bales from Lodhran at Rs 6900, 413 bales from Rahim Yar Khan at Rs 7200 and 100 bales from Chistian at Rs 6100, 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 Ex-Karachi Ex. KHI. As Ex-Karachi
on 31-05-2018
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37.324 kg 7,400 145 7,545 7,545 NIL
Equivalent
40 kgs 7,931 155 8,086 8,086 NIL
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