Spot rate was lower on the cotton market on Saturday amid improved business activity, dealers said. The official spot rate was down by Rs 50 to Rs 4650, dealers said. Seed cotton prices in Sindh were at Rs 1700-2000, In Punjab, prices were at Rs 1700 and Rs 2300, they said. In the ready business, over, 10,000 bales of cotton changed hands between Rs 4600 and Rs 4875, they said.
According to the market sources, during monsoon rains quality of cotton affected by higher content of moisture and growers may face losses. Cotton analyst, Naseem Usman said that to protect their crop from the rains, the growers would have to use pesticides. Other brokers said that cotton traders feel that the business is not showing improvement as China is still not very active buyer, like previous years.
Reuters adds: Benchmark cotton futures on ICE Futures US hit a more than three-month low on Friday before recovering on a sharp move lower in the US dollar, but ended July down 6.8 percent for their worst month since September 2014. December cotton on ICE Futures US settled up by 0.66 cent on Friday, a 1 percent gain, at 64.21 cents per pound, after falling as low as 63.27 cents per pound, the lowest level since April 23.
Total futures market volume rose by 6,224 to 20,085 lots. Data showed total open interest gained 608 to 177,722 contracts in the previous session. The following deals reported: 1000 bales from Mirpurkhas at Rs 4600-4650, same figure from Golarchi at Rs 4625, same number from Hyderabad, 400 bales from Hyderabad, 1500 bales from Sanghar all done at the same prices, 400 bales from Hala at Rs 4650, 1000 bales from Tando Adam at Rs 4650-4700, 1400 bales from Shahdadpur at the same rate, 400 bales from Mongi Bangla at Rs 4850 and same number from Chichawatni at Rs 4875, 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 31.07.2015
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37.324 Kgs 4,650 150 4,785 4,850 -65
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Equivalent
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40 Kgs 4,983 160 5,128 5,197 -69
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