A modest trading activity was again witnessed on the cotton market on Friday as mills and spinners cover immediate needs, dealers said. The official spot rate was inert at Rs 5050, dealers said. In the ready session, around 6,000 bales of cotton changed hands between Rs 4000 and Rs 5200, they said.
The prices of seed cotton in Sindh were at Rs 1800 and Rs 2400 and in Punjab rates were at Rs 2000 and Rs 2700, they said.
Diminishing stock of quality lint is a rising concern for the mills and spinners, they said. Most of them were trying to cover their immediate needs amid hovering fears of further increase in the rates, cotton analyst, Naseem Usman said.
In the meantime, cotton sowing has started in some parts of Sindh, in Punjab, it would take some time, he added. Besides, the ginners were holding back unsold cotton in expectations of better profit, he said.
Reuters adds: Cotton futures hit a two-week high in heavy volume on Thursday after large gains during the prior session attracted technical buyers and a US government report showed strong new sales and exports in the prior week.
The front-month May cotton contract on ICE gained 0.47 cent, or 0.8 percent, to settle at 62.95 cents a lb after rising as high as 63.41 cents, the highest for the May contract since March 5. Thursday marked the first time May cotton had risen for two straight sessions since late February.
The following deals reported: 1000 bales of cotton from Sanghar sold at Rs 4000-4230, 200 bales from Rohri at Rs 4850, 400 bales from Khanpur Mehar at Rs 5050, same figure from Bahawalpur at Rs 4700, 500 bales from Hasilpur at Rs 4950, 400 bales from Mianwali at Rs 5200 and 3000 bales from Sadiqabad at the same rate, 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 1-1/32"
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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 19.03.2015
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37.324 Kgs 5,050 150 5,200 5,200 NIL
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Equivalent
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40 Kgs 5,412 160 5,572 5,572 NIL
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