No major change was seen on the cotton market on Friday after the Pakistan Cotton Ginners Association (PCGA) fortnightly report, dealers said. The official spot rate was unchanged at Rs 5,250, dealers said. In Sindh, seed cotton was at Rs 2000 and Rs 2900 and in the Punjab, rates were at Rs 2000 and Rs 3000, they said. In the ready business, over 8,000 bales of cotton finalised between Rs 5150 and Rs 5600, they said.
They said that the mills continued routine buying after PCGA report as they ignored the short arrival. The mills were not getting better return despite higher cost of production, other experts said.
According to the fortnightly report of Pakistan Cotton Ginners Association (PCGA) issued today, seed cotton (Phutti) equivalent to 9.034 million or 9,034,115 bales have reached till December 15 registering a shortfall of 31.74 percent compared to corresponding period of last year. Report also showed that out of total arrivals, Phutti equivalent to 8,473,737 or 8.47 million bales has undergone the ginning process. Cotton analyst, Naseem Usman said that like Pakistan, in India production also declined due to Curl Leave cotton virus, pink worm boll and several other virus.
Reuters adds: Cotton futures fell for the sixth straight session on Thursday, hitting their lowest levels in 2-1/2 weeks as a stronger US dollar weighed on prices and a US export sales report suggested weak demand at the upper end of a prolonged tight trading range
A weekly US government report showed US upland cotton export sales totalled 99,500 bales last week, up from the week before but below the prior four-week average and below market expectations. March cotton on ICE Futures US settled down 0.26 cent, or 0.4 percent, at 62.99 cents per lb, after falling as low as 62.87 cents a lb, the lowest level since December 1. Total futures market volume rose to 15,728 contracts, up from 13,836 contracts in the prior session.
The following deals reported, 2400 bales from Nawab Shah at Rs 5175-5250, 200 bales from Koroondi at Rs 5325, 400 bales from Sui Gas at Rs 5325, 400 bales from Rohri at Rs 5315, 200 bales from Jahanian at Rs 5000, 200 bales from Vehari at Rs 5150, 200 bales from Hasilpur at Rs 5150, 400 bales from Chichawatni at Rs 5150, 800 bales from Bahawalpur at Rs 5175-5250, 200 bales from Faqirwali at Rs 5200, 500 bales from Haroonabad at Rs 5250, 400 bales from Khanewal at Rs 5380, 200 bales from Ghazi Ghat, 400 bales from Fazilpur, 400 bales from Mianwali, 2000 bales from Khanpur all done at Rs 5550, 400 bales from Sadiqabad and 600 bales from Liaquatpur 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 17-12-2015
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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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