Cotton market: trade activity improves as falling rates attract mills, spinners

Seed cotton prices continued on the cotton market on Tuesday, which propelled mills and spinners to purchase as much as they can, 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 2350 and in Punjab rates fell by Rs 100 to Rs 2100 and Rs 2300, they said. In the ready business, over 20,000 bales of cotton changed hands between Rs 4550 and Rs 4600, they said.
According to the market sources, comfortable supply of phutti helped the prices to go down, prices may continue decline if supply eases further. Cotton analyst, Naseem Usman said that if mills and exporters showed interest in fresh buying prices may stabilise in times to come.
Reuters adds: ICE cotton futures settled unchanged on Monday, remaining near the bottom of a recent trading range on uncertainty about the US crop and concern about emerging market demand, as traders awaited a new supply and demand report next month. "There's days to buy, there's days to sell, and there's days to do nothing," said Ron Lawson, a partner at commodity investment firm Logic Advisors in Sonoma, California.
December cotton on ICE Futures US remained unchanged from the previous session on Monday at 63.00 cents per pound. It traded within a range of 62.40 and 63.53 cents a pound. Total futures market volume rose by 1,217 lots to 17,456 lots. Data showed total open interest fell 923 contracts to 180,092 contracts in the previous session.
The following deals reported: 200 bales from Jhole at Rs 4575, 400 from Naoabad at Rs 4575, 1800 bales from Sanghar at Rs 4550-4600, 3000 bales from Shahdadpur at Rs 4575-4600, 2000 bales from Tando Adam at Rs 4575/4600, 2000 bales from Mirpurkhas at Rs 4575-4625, 200 bales from New Saeedabad at Rs 4600, 400 bales from Renala khurd at Rs 4550-4600, 400 bales from Jahanian at Rs 4575-4600, 600 bales from Vehari at Rs 4575/4650, 200 bales from Haroonabad at Rs 4600, 200 bales from Memo Kanjan at Rs 4600, 200 bales from Kassowal at Rs 4600, 200 bales from Gaggo Mandi at Rs 4600, 200 bales from Toba Tek Sing at Rs 4600, 2400 bales from Burewala at 4600-4670, 600 bales from Khanewal at Rs 4600/4675, 1200 bales from Chichawatni at Rs 4600/4675, 600 bales from Mian Chano at Rs 4600-4675, 200 bales from Pak Pattan at Rs 4625, 200 bales from Mongi Bangla at Rs 4640, 200 bales from Gojra at Rs 4650, 400 bales from Hasilpur at Rs 4650, 400 bales from Alipur at Rs 4650 and same figure from Shor Kot at Rs 4650, 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 31.08.2015

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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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