No business activity witnessed on the cotton market came to standstill on Saturday as main participants were on the sidelines due to less buying interest, dealers said. The official spot rate was unchanged at Rs 7,500, they added. Prices of seed cotton in Sindh were available at Rs 3800-4150, they said.
Explaining the present trend in the market, some brokers said that tight supply position kept the participants away from the market. Cotton analyst Naseem Usman said that phutti arrivals could not be sustained for a long particularly from Sindh. He said that he hopes arrivals will improve in the coming days.
According to reports, in India cotton growing areas may also face water shortage problem, which likely to push rates higher in the near future. In the mean time, others said that it is felt locally that dollar's strength versus the rupee to help in increasing the textile products in days to come.
Adds Reuters: ICE cotton futures rose more than 1 percent on Friday, supported by a rebound in commodity prices, but the natural fibre marked its worst week in nine months amid escalating trade tensions between the United States and China. The most active cotton contract on ICE Futures US, the third-month December contract, settled up 1.01 cent, or 1.2 percent, at 85.3 cents per lb. It traded within a range of 84.2 and 85.62 cents a lb. The third month contract fell about 5 percent for the week, the biggest weekly decline since mid-September.
"Today cotton is being bolstered by the macro scenario. Commodities in general are rallying today after dropping due to trade concerns," said Gabriel Crivorot, an analyst at Societe Generale in New York.
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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 22-06-2018
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37.324 kg 7,500 145 7,645 7,645 NIL
Equivalent
40 kgs 8,038 155 8,193 8,193 NIL
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