Seed cotton prices dropped sharply on the cotton market on Thursday amid slow trading activity, dealers said. The official spot rate was unchanged at Rs 5,250, dealers said. In Sindh, seed cotton low type prices were lower by Rs 200 to Rs 2000 while the best quality maintained overnight level at Rs 2900 and in the Punjab, rates of low variety also fell by Rs 200 to Rs 2000, while fine type was inert at Rs 3000, they said.
In the ready business, over 8,000 bales of cotton finalised between Rs 5120 and Rs 5600, they said. According to some brokers, phutti prices failed to sustain overnight gains due to lack of buying interest. Besides, in India, to increase production, Cotton Corporation of India (CCI) is providing a subsidy of Rs 110 to farmers per 20kg of phutti.
Cotton yarn in the local market is losing it's lustre owing to sluggish demand by buyers, they said. Cotton analyst, Naseem Usman said that prices may not fluctuate sharply in the coming days.
Reuters adds: Cotton futures dipped in light volume on Wednesday, paring gains from earlier in the session after the US Federal Reserve announced an interest rate hike, boosting the dollar and raising concerns that capital would flow out of commodities.
March cotton on ICE Futures US settled down 0.06 cent, or 0.09 percent, at 63.25 cents per lb. It traded within a range of 63.06 and 63.62 cents a lb. That marked the contract's fifth consecutive session of losses. Total futures market volume rose to 13,836 contracts, from 13,482 contracts in the prior session.
The following deals reported, 200 bales from Mehrabpur at Rs 5300, 600 bales from Rohri at Rs 5300/5425, 400 bales from Sui Gas at Rs 5325, 400 bales from Ghotki at Rs 5550, 600 bales from Bahawalpur at Rs 5120/5150, 200 bales from Hasilpur at Rs 5150, 400 bales from Bahawal Nagar at Rs 5175, 600 bales from Chistian at Rs 5175, 400 bales from Haroonabad at Rs 5200, 1100 bales from Fort Abbas at Rs 5200/5250, 400 bales from Khanewal at Rs 5400, 200 bales from Jahanian at Rs 5400, 400 bales from Rahim Yar Khan at Rs 5550, 600 bales from Mianwali at Rs 5550/5600 and 800 bales from Sadiqabad at Rs 5550/5600, 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 16-12-2015
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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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