Official spot rates continued to slide on the cotton market on Saturday amid rise in phutti arrivals, dealers said. The official spot rate continued slide, losing more Rs 50 to Rs 4,450, dealers said. Seed cotton prices in Sindh were at Rs 2000 and Rs 2350 and in Punjab rates were at Rs 2000 and Rs 2450, they said.
In the ready business, around 12,000 bales of cotton changed hands between Rss 4450 and Rs 4850, they said Market sources said that quality phutti with less moisture have started reaching ginneries. There were no rains in both the Punjab and Sindh, so it is most likely that arrival of quality seed cotton will improve in times to come.
Cotton analyst, Naseem Usman said that no any progress in yarn selling is one of the major concerns for the cotton traders. Demand for cotton not rising from importing countries, especially, China, is still on the sidelines due to less buying interest, he said. Different problems and issues were causing doing business costlier with the passage of time, which is making traders and businessmen perturbed, he added.
Reuters adds: ICE cotton futures fell for a fifth straight session on Friday, hitting their lowest levels in more than seven months on concerns about weak demand ahead of a US government supply and demand report expected next week. December cotton on ICE Futures US settled down by 0.47 cent on Friday, a 0.8 percent loss, at 61.79 cents per pound for its fifth straight session of losses. It fell as low as 61.62 cents a lb, the lowest level since January 23.
The December contract closed the week down 0.4 percent for its sixth consecutive weekly loss, and its sharpest weekly loss since September 2014. Total futures market volume fell by 17,349 to 22,503 lots. Data showed total open interest gained 2,162 to 183,141 contracts in the previous session.
The following deals reported: 2000 bales from Sanghar at Rs 4450-4500, 2000 bales from Shahdadpur at the same rate, 1800 bales from Mirpur Khas at Rs 4475-4500, 200 bales from Kot Ghulam Mohammad at Rs 4485, 200 bales from Hala at Rs 4500, 1000 bales from Hyderabad at Rs 4500-4600, 2400 bales from Tando Adam at Rs 4500-4550, 200 bales from Moro at Rs 4600, same figure from Vehar at Rs 4750, 600 bales from Burewala at Rs 4750-4850, 400 bales from Haroonabad at Rs 4800 and 200 bales from Shoor Kot 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 07.08.2015
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37.324 Kgs 4,450 150 4,585 4,635 -50
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Equivalent
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40 Kgs 4,769 160 4,914 4,968 -54
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