Official spot rate went up on the cotton market on Thursday as reports of rains propelled mills and spinners to make deals despite higher rates, dealers said. The official spot rate was up by Rs 100 to Rs 7,600, they added. Prices of seed cotton in Sindh were at Rs 3800-3900, they said. In the Punjab, rates of phutti were at Rs 3500-4000, they added. Binola rates in Sindh and Punjab were almost stable, they said.
In ready session, around 4000 bales of cotton finalised between Rs 6675-7625, they said. In Sindh, rates of 600 bales of cotton were at Rs 8100-8150 and in Punjab, 400 bales from various stations, prices finalised at Rs 8250-8300, they said.
According to the market sources after monsoon rains a kind of uncertainties seen among buyers due to quality factor. Earlier, marketmen were expecting that cotton production will show significant increase against the last year, they added.
Explaining the latest position of cotton business, cotton analyst Naseem Usman said that rains are beneficial for the cotton crop, but the growers have to remove stagnant water from plants' root, which could hurt the quality of cotton.
It was noted that since the seed cotton arrivals started, best quality was not easily available, this factor is a big concern for the traders, he added.
Adds Reuters: ICE cotton futures settled higher for the first time this week in narrow range trading on Wednesday, as investors remained cautious ahead of the US Department of Agriculture's (USDA) crop acreage report later this week.
The most active cotton contract on ICE Futures US, the third-month December contract, settled up 0.36 cent, or 0.43 percent, at 84.87 cents per lb. It traded within a range of 84.19 and 84.99 cents a lb.
Following deals reported: approximately 3400 bales of cotton from Rahim Yar Khan done at Rs 7625 and 131 bales of cotton from Karor Pakka finalised at Rs 6675, they added.
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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 27-06-2018
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37.324 kg 7,600 145 7,745 7,645 + 100/-
Equivalent
40 kgs 8,145 155 8,300 8,193 + 107/-
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