Cotton market: Prices firm as buying interest emerges among mills, spinners

Rates stabilised on the cotton market on Tuesday as some leading mills and spinners took interest in fresh buying to meet urgent needs, dealers said. The official spot rate was unchanged at Rs 5,250, dealers said. In Sindh, seed cotton prices were inert at Rs 1800 and Rs 2900 and in the Punjab, rates were at Rs 2300 and Rs 3200, they said. In the ready business, over 15000 bales of cotton changed hands between Rs 4850 and Rs 5650, they said.
According to the market sources, significant rise was seen in the routine buying of cotton, which helped the prices to hold present levels. Cotton analyst, Naseem Usman said that country has produced 9.27 million bales during the current season, showing a shortfall of 33.5 percent. It was noticed that buyers did not show any concern in the absence of foreign and local demand, he added.
Reuters adds: Cotton futures fell to their lowest levels in more than one month on Monday as weak manufacturing data and tumbling stocks in China, the world's top consumer of the fiber, stoked demand concerns. March cotton on ICE Futures US settled down 0.67 cent, or 1.06 percent, at 62.61 cents per lb, after rising as high as 63.55 cents a lb, its highest level since November 30. Total futures market volume rose by 12,085 to 29,639 lots. Data showed total open interest gained 242 to 185,394 contracts in the previous session.
The following rates finalised: 600 bales of cotton from Sanghar at Rs 5250, 400 bales from Moro at Rs 5200, 200 bales from Rohri at Rs 5425, 400 bales from Dharki at Rs 5600, 400 bales from Ghotki at Rs 5600, 4500 bales from Khanewal at Rs 4850-5300, 200 bales from Hasilpur at Rs 5275, 400 bales from Bahawal Nagar at Rs 5300, 600 bales from Yazman Mandi at Rs 5350-5400, 400 bales from Haroonabad at Rs 5500, 400 bales from Jalalpur at Rs 5500, 200 bales from Fort Abbas at Rs 5500, 400 bales from Mianwali at Rs 5550, 400 bales from Sardar Garh at Rs 5600, 2200 bales from Rahim Yar Khan at Rs 5600 and 2000 bales from Sadiqabad at Rs 5600-5650, they 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 04-01-2016

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37.324 kg         5,250       135         5,385        5,385            NIL

Equivalent

40 kgs            5,626       145         5,771        5,771            NIL

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