A recent increase in the dollar rate and decline in arrivals of cotton failed to give a boost to the trading activity on the cotton market on Thursday, dealers said. The official spot rate was inert at Rs 5,250, dealers said. In Sindh, seed cotton prices were at Rs 2200 and Rs 2800 and in the Punjab, rates were at Rs 2300 and Rs 3000, they said.
In the ready business, around 10,000 bales of cotton finalised between Rs 4725 and Rs 5600, they said. Cotton analyst, Naseem Usman, observed that despite a sharp cut in reports issued by the Pakistan Cotton Ginners Association (PCGA), the figures of cotton arrival up to December 1st, showing a decrease of 28.93 percent compared to corresponding period last year when ginneries received 1,21,45,705 bales. According to the 7th fortnightly report, the total arrivals, of 8.631 million bales of cotton have been reached into ginneries.
Reuters adds: Cotton futures dipped on Wednesday, pressured by a stronger US dollar and a rout across the commodity complex, even amid concerns that unfavourable weather had delayed harvests and damaged crop quality. "Oil's got a three in front of it," said a California cotton merchant, referring to US crude's drop to below $40 a barrel. "Quality's suffering, and cotton's stuck in a range."
March cotton on ICE Futures US settled down 0.04 cent, or 0.06 percent, at 63.50 cents per lb. It traded within a range of 63.25 and 63.93 cents a lb. Total futures market volume fell by 3,321 to 18,932 lots. Data showed total open interest gained 2,363 to 180,779 contracts in the previous session.
The following deals reported, 200 bales form Uthal at Rs 5200, 600 bales from Kazi Ahmed at Rs 5250, 400 bales from Kot Lalo at the same rate, 1000 bales from Khairpur at Rs 5325-5350, 800 bales from Salehpat at Rs 5425, 600 bales from Ghotki at Rs 5550, 400 bales from Mian Chano at Rs 4725, same figure from Kassowal at the same rate, 600 bales from Chichawatni at Rs 5100, 800 bales from Vehari at Rs 5200-5250, 400 bales from Maroot at Rs 5350, 500 bales from Yazman Mandi, 400 bales from Feroza, 600 bales from Mianwali all done at the same rate and 1200 bales from Rahim Yar Khan at Rs 5575-5600, 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 02-12-2015
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37.324 kg 5,250 135 5,385 5,385 Nil
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Equivalent
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40 kgs 5,626 145 5,771 5,771 Nil
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