Phutti prices likely to come under pressure as supply improved after a short break on the cotton market on Monday, dealers said. The official spot rate sustained overnight level at Rs 4,550, dealers said. Seed cotton prices in Sindh were lower by Rs 50 to Rs 2300 and Rs 2400 and in Punjab rates at Rs 2200 and Rs 2400, they said. In the ready business, over 16,000 bales of cotton changed hands between Rs 4600 and Rs 4700, they said.
After an improvement in arrivals of phutti, trading activity improved as exporters also took part due to lower rates, too, they said. Cotton analyst, Naseem Usman said that spinners and mills were trying to lay hands over as much as they can. It looks that prices may depict softness in the short-run, he added.
Reuters adds: China's production of top quality cotton, known as extra-long staple (ELS) cotton, could be three times last year's crop in 2015/16, traders estimate, pressuring prices and demand from global exporters like the United States. ELS cotton, also known as pima, makes up a tiny portion of total cotton consumption. It is mainly used by luxury shirt brands and in high-end bed sheets.
The following deals reported: 3000 bales of cotton from Sanghar sold at Rs 4600-4685, 2000 bales from Mirpurkhas at Rs 4625-4650, 1400 bales from Hyderabad at Rs 4650-4675, 2600 bales from Shahdadpur at Rs 4625-4690, 2000 bales from Tando Adam at Rs 4650-4675, 400 bales from Maroot at Rs 4600, 600 bales from Chichawatni at Rs 4600-4650, 200 bales from Mian Chano at Rs 4625, 600 bales from Hasilpur at Rs 4625-4650, 1600 bales from Burewala at Rs 4650, 400 bales from Mongi Bangla, 200 bales from Gojra, 400 bales from Vehari, 200 bales from Sahiwal all finalised at the same level, same figure from Jahanian at Rs 4675 and 400 bales from Khanewal at Rs 4700, 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 29.08.2015
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37.324 Kgs 4,550 135 4,685 4,685 NIL
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Equivalent
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40 Kgs 4,876 145 5,021 5,021 NIL
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