The ginners showed interest in selling of unsold stock ahead of report of arrivals of new crop some early, dealers said on the cotton market on Tuesday. The official spot rate was inert at Rs 5450, dealers said. In the ready session, around 6000 bales changed hands between Rs 4625-5750, they said.
Commenting on the present trend in the market, Cotton analyst, Naseem Usman said that buyers were making deals as prices were matching with their psychological levels. On the other hand, the ginners were under pressure slightly as the news about the next production started arriving in the market, he said and adding that prices to maintain firm posture in the coming days. Other brokers said that after the Gas Infrastructure Development Cess (GIDC), the traders were a little bit disturbed, all are calling that it will devastate industry.
Reuters adds: ICE cotton futures on Monday fell the most in a single session in two weeks, on strength in the US dollar and a continued rise in certificated stocks, as index funds continued to roll long positions from the July contract to December. July cotton on ICE Futures US settled down by 0.60 cent on Monday at 63.75 cents per pound, the largest single-session decline since May 18. It traded within a range of 63.69 and 65.15 cents a pound.
The December contract's premium to July rose to 0.32 cent per pound, up from 0.29 cent on Friday. Total futures market volume fell by 28,507 to 31,269 lots. Data showed total open interest gained 879 to 189,670 contracts in the previous session. The following deals reported: 400 bales of cotton from Gojra sold at Rs 4625, same figure from Mian Chano at Rs 5450, 1000 bales from Sadiqabad at Rs 5600, 2000 bales from Rahim Yar Khan at Rs 5600-5675 and same figure from Khanpur finalised at Rs 5600-5750, 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 1-1/32"
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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 01.06.2015
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37.324 Kgs 5,450 150 5,600 5,600 NIL
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Equivalent
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40 Kgs 5,841 160 6,001 6,001 NIL
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