Short supply of seed cotton after monsoon rains pushed rates higher on the cotton market on Tuesday in the process of thin business, dealers said. The official spot rate gained Rs 50 to Rs 4650, dealers said. Seed cotton prices in Sindh and Punjab were at Rs 1800-2300, they said. In the ready business, over, 3000 bales of cotton changed hands between Rs 4700 and Rs 5000, they said.
Some brokers said that standing cotton crop is almost safe but at the same time phutti supply has disturbed. But on the other hand, experts believe that current spells of monsoon rains may affect quality of seed cotton as rainy, wet and hummed weather has adverse impact on the cotton flowers, which otherwise need dry and hot climate, other analysts said. Cotton analyst Naseem Usman said that the Trading Corporation of Pakistan (TCP) has taken decision to open tender for the sale of 95,000 cotton bales, so if mills showed interest, this factor may stabilise rates in the coming days.
Reuters adds: Benchmark cotton futures on ICE fell to their lowest in over three months on Monday after steep stock market losses in top consumer China, which pressured commodities across the board. "When a gigantic portion of the world economy is under duress, that's bearish for everything," said Jobe Moss, a broker with MCM Inc in Lubbock, Texas.
December cotton on ICE Futures US settled 0.84 cent lower, or 1.3 percent, at 63.80 cents per pound, after falling as low as 63.69 cents a lb, the lowest level for the ICE second-month contract since April 23. Total futures market volume rose by 9,888 to 21,989 lots. Data showed total open interest fell by 332 to 176,642 contracts in the previous session. The following deals reported: 200 bales of cotton from Sanghar at Rs 4700, 400 bales from Shahdadpur, same figure from Hyderabad done at the same rate, same number from Sahiwal at Rs 4850, 200 bales from Samundary finalised at the same rate, 200 bales from Gojra at Rs 4875, same number from Shoor Kot at Rs 4900, 400 bales from Pakpattan, 400 bales from Chichawatni done at the same rate and 300 bales from Bureawal at Rs 5000, 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 1-1/32"
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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 27.07.2015
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37.324 Kgs 4,650 150 4,800 4,750 +50
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Equivalent
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40 Kgs 4,983 160 5,143 5,090 +53
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