Sustained buying by mills and spinners, helped rates to hold firmness on the cotton market on Thursday in process of trading, dealers said. The official spot rate maintained an upward march, picking up more Rs 50 to Rs 5,350, dealers said. In Sindh, prices of seed cotton were higher by Rs 100 to Rs 1800 and Rs 3000 and in the Punjab, rates were at Rs 2200 and Rs 3200, they said. In the ready business, around 6000 bales of cotton changed hands between Rs 4750 and Rs 5685, they said.
Tight supply of cotton, propelled mills and spinners to make deals at the prevailing rate, dealers said. Cotton analyst, Naseem Usman said that prices showed steadier trend due to little stock of unsold of cotton of fine variety. There are strong indications that prices may retain firmness in the coming days as supply is against demand, he added.
Reuters adds: Cotton futures touched a six-week low in heavy volume on Wednesday amid concerns about the economy in top consumer China, while US producer selling picked up as farmers who had held off until the new year for tax reasons entered the market.
The commodities complex dropped to its lowest level in 13-1/2 years amid concerns about the Chinese economy. Private analytics firm Informa Economics pegged the current US 2015/16 cotton crop at 13 million bales, up from a forecast of 12.9 million bales last month.
March cotton on ICE Futures US settled down 0.68 cent, or 1.08 percent, at 62 cents per lb, after falling as low as 61.86 cents a lb, its lowest level since November 25. The following bales finalised: 1000 bales from Shahdadpur at Rs 4750, 2000 bales from Rohri at Rs 5450-5525, 400 bales from Fort Abbas at Rs 5350-5400, 400 bales from Haroonabad at Rs 5400, 400 bales from Faqirwali at Rs 5400, 200 bales from Mohammadpur Dewan at Rs 5500, 600 bales from Mianwali at Rs 5500-5550, 400 bales from Noorpur at Rs 5600, 1000 bales from Rahim Yar Khan at Rs 5600-5625, 200 bales from Bahawalpur at Rs 5675 and 400 bales from Dera Ghazi Khan at Rs 5685, 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 06-01-2016
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37.324 kg 5,350 135 5,485 5,435 +50
Equivalent
40 kgs 5,734 145 5,879 5,825 +54
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