Mills indulged in active buying on the cotton market on Tuesday amid curtail in supply of seed cotton, causing increase in rate, as well, dealers said. The official spot rate was higher by Rs 50 to Rs 4,500, dealers said. Seed cotton prices in Sindh were at Rs 2200 and Rs 2400 and in Punjab rates were at Rs 1800 and Rs 2500, they said.
In the ready business, around 15,000 bales of cotton changed hands between Rs 4475 and Rs 4800, they said. Some brokers said that prices moved up slightly due to slight fall in supply of phutti. At the same time, cotton analyst, Naseem Usman said that mills were laying hands over the fine quality. He said that the mills were busy in replenish their stock to fulfil their short-term needs.
Commenting on the China's move, some experts said that after this factor, economic condition likely to show improvement in times to come. China devalued the yuan on Tuesday after a run of poor economic data, guiding the currency to its lowest point in almost three years.
Reuters adds: ICE cotton futures on Monday rose for the first time in six days as the contract reached technically oversold territory, and a move to the lowest levels in more than six months prompted short-covering and some new speculative buying. The move lower saw the December contract come close to its contract low of 61.28 cents a lb. December cotton on ICE Futures US settled up by 0.17 cent on Monday, a 0.3 percent gain, at 61.96 cents per pound. It traded within a range of 61.50 and 62.90 cents a pound.
Total futures market volume rose by 1,305 to 24,317 lots. Data showed total open interest increased 837 to 183,978 contracts in the previous session.
The following deals reported: 200 bales from Khadro at Rs 4480, 1600 bales from Sanghar at Rs 4475-4550, 2000 bales from Shahdadpur at Rs 4500-4575, 400 bales from Golarchi at Rs 4550, 200 bales from Matli, 800 bales from Kotri, 100 bales from Hyderabad, 600 bales from Moro all done at the same rate, 1400 bales from Tando Adam at Rs 4550-4600, 2000 bales from Mirpur Khas at the same rate, 200 bales from Vehari at Rs 4725, same figrue from Shoor Kot at Rs 4750, 800 bales from Khanewal, 200 bales from Bakhar, 600 bales from Chichawatni, 400 bales from Mongi Bangla finalised at the same rate, 600 bales from Pak Pattan at Rs 4750-4800, 800 bales from Burewala at Rs 4800, same figure from Haroonabad, 200 bales from Sahiwal and 400 bales from Theeng Mor done 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 10.08.2015
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37.324 Kgs 4,500 135 4,635 4,585 +50
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Equivalent
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40 Kgs 4,823 145 4,968 4,914 +54
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