Selective buying was seen on the cotton market on Wednesday in the process of trading, dealers said. The official spot rate was unchanged at Rs 4650, dealers said. Seed cotton prices in Sindh and Punjab were at Rs 1800-2300, they said. In the ready business, over, 4000 bales of cotton changed hands between Rs 4700 and Rs 4900, they said.
According to the market sources, mills indulged in selective buying of cotton. Cotton analyst, Naseem Usman said that after monsoon rains in cotton belt buyers were on the sideline as they were trying to purchase best quality of cotton to compete the international market.
Reuters adds: Benchmark cotton futures on ICE rose the most in two weeks on Tuesday after a drop to more than three-month lows triggered physical demand, resulting in short-covering by speculators.
Rose noted that there was a big amount of short-covering when prices approached last week's settlement level at 64.64 cents a lb. December cotton on ICE Futures US settled up 0.8 cent on Tuesday, a 1.3 percent gain, at 64.60 cents per pound, marking the second-month's largest single-session gain since July 14. Earlier in the session, it fell as low as 63.56 cents a lb, the lowest for the second-month since April 23.
Total futures market volume fell by 603 to 21,910 lots. Data showed total open interest at 177,539 contracts, up 897 from the previous session. The following deals reported: 400 bales of cotton from Hyderabad sold at Rs 4700, same figure from Pakpattan at Rs 4800, 600 bales from Bhakhar at Rs 4850-4875, 400 bales from Chichawatni at Rs 4875, 600 bales from Burewala at Rs 4900, same figure from Arifwala and 200 bales of cotton from Nerala Khurd at the same rate, 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 28.07.2015
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37.324 Kgs 4,650 150 4,800 4,800 NIL
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Equivalent
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40 Kgs 4,983 160 5,143 5,143 NIL
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