Official spot rate was sharply higher on the cotton market on Friday amid persistent demand by mills and spinners, dealers said. The official spot rate went up by Rs 150 to Rs 5200, dealers said. In Sindh, seed cotton was unchanged at Rs 2600 and Rs 2900 and in Punjab prices were at Rs 2500 and Rs 3100, they said. In the ready business, around 16,000 bales of cotton changed hands between Rs 5100 and Rs 5500, they said.
Market sources said it is still not clear that in fact crop is short in demand or growers are not willing to sell now to push the rates further higher in the coming days Cotton analyst, Naseem Usman said that declines in arrivals of phutti caused panic buying from some spinners and exporters, who seemed to be in a hurry to build up their stock, thereby pushing up lint prices to a seasonal record level.
Adds Reuters: ICE cotton fell on Thursday as weekly US government export sales data suggested that beyond a large sale to Mexico, whose purchases are seen as a given, demand for US cotton remained weak world-wide despite low prices. December cotton on ICE Futures US settled down by 0.33 cent on Thursday, a 0.5 percent loss, at 61.72 cents per pound. It traded within a range of 61.44 and 62.45 cents a pound.
Total futures market volume rose by 285 to 17,375 lots. Data showed total open interest fell 155 to 189,606 contracts in the previous session. The following deals reported: 2000 bales from Nawabshah at Rs 5100-5250, 2000 bales from Khairpur at Rs 5350-5400, 1000 bales from Salehpat at Rs 5350-5400, 1200 bales from Rohri at Rs 5350-5400, 2500 bales from Dharki at Rs 5500, 200 bales from Faqirwali at Rs 5300, 400 bales from Lodhran at Rs 5300, 2000 bales from Haroonabad at Rs 5300-5475, 800 bales from Mianwali at Rs 5400, 200 bales from Vehari at Rs 5400, 400 bales from Layyah at Rs 5400, 400 bales from Fazilpur at Rs 5400-5500, 1000 bales from Dera Ghazi Khan at Rs 5500, 600 bales from Rajanpur at Rs 5500, 800 bales from Ahmedpur at Rs 5500, 400 bales from Muhammadpur Dewan at Rs 5500 and 400 bales from Kot Sabzal at Rs 5500, 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 08-10-2015
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37.324 Kgs 5,200 135 5,335 5,185 +150
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Equivalent
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40 Kgs 5,573 145 5,718 5,557 +161
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