Mills indulged in panic buying on the cotton market on Tuesday ahead of the Pakistan Cotton Ginners Association (PCGA) report shortly, dealers said. The official spot rate was unchanged at Rs 5,300, dealers said. In Sindh, seed cotton prices were at Rs 2400 and Rs 3000 and in the Punjab rates were at Rs 2500 and Rs 3100, they said. In the ready business, over 20,000 of deals were finalised between Rs 4800 and Rs 5600, they said.
Some of experts were of the view that reports of crop size and stable dollar propelling mills to make fresh deals, besides fine variety is also a factor behind the rise in fresh demand. Cotton analyst, Naseem Usman said that as a whole, market is firm but higher cost of doing business is not encouraging traders or mills to run their business with a peace of mind. Locally, traders were importing cotton because of short crop, furthermore, weaker Indian rupee is also helping them to make fresh deals, he added.
Reuters adds: ICE cotton futures touched their highest level since early November on Monday on a chart-fuelled jump, before paring gains on producer selling. A breach of resistance at a long-term downtrend line around 62.60 cents per lb and the 20-and-50-day moving averages was technically positive, said a US trader.
The March cotton contract on ICE Futures US settled up 0.62 cent, or one percent, at 62.61 cents per lb. It traded as high as 63.55 cents a lb. The cash to second-month spread fell 0.52 cent to 0.9 cents per lb. Total futures market volume rose by 15,164 to 56,559 lots. Data showed total open interest fell 7,644 to 184,225 contracts in the previous session.
The following deals reported, 1000 bales from Tando Adam at Rs 4800-4900, 400 bales from Nawabshah at Rs 5300, 3000 bales from Khairpur at Rs 5350-5400, 400 bales from Rohri at Rs 5500, 400 bales from Ghotki at Rs 5650, 400 bales from Dharki at Rs 5650, 800 bales from Mirpur Mathailo at Rs 5650, 400 bales from Khanpur Mehar at Rs 5650, 400 bales from Bakhar at Rs 5400, 400 bales from Rajanpur at Rs 5400, 400 bales from Layyah at Rs 5450, 800 bales from Faqirwali at Rs 5450, 600 bales from Dera Ghazi Khan at Rs 5450-5500, 600 bales from Alipur at Rs 5450, 400 bales from Burewala at Rs 5460, 400 bales from Bahawalpur at Rs 5500, 1600 bales from Fort Abbas at Rs 5500-5525, 1000 bales from Yazman Mandi at Rs 5500-5525, 1400 bales from Rahim Yar Khan at Rs 5550-5600, 5000 bales from Mianwali at Rs 5575-5625 and 1000 bales from Sadiqabad at Rs 5600, 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 16-11-2015
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37.324 kg 5,300 135 5,435 5,435 NIL
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Equivalent
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40 kgs 5,680 145 5,825 5,825 NIL
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