Prices showed modest increase on the cotton market on Tuesday in the process of improved activity, dealers said. The official spot rate was higher by Rs 50 to Rs 5,400, dealers said. In Sindh, prices of seed cotton were at Rs 1800 and Rs 3000 and in the Punjab, rates were at Rs 2200 and Rs 3200, they said.
In the ready business, around 10,000 bales of cotton changed hands between Rs 4400 and Rs 5675, they said. Commenting on the rise in demand, some brokers said that the ginners were not showing interest in present deals, on expectations of better profits in the coming days.
Other experts said that short crop is propelling the sellers to keep on the sideline but some cautious and needy ginners prefer to sell to meet their urgent requirement. Cotton analyst, Naseem Usman said that many are hoping for positive outcome in the Heilm textil in Frankfurt, starting from today.
Reuters adds: Cotton futures rebounded on Monday after hitting a three-month low hit early in the session as the low prices attracted buyers and concerns about shortfalls in the recently-harvested US crop drove nearby prices closer to par with forward contracts The March-May spread tightened to its narrowest in 2-1/2 months, with March's discount falling to 0.46 cent per lb, reflecting concerns about the US 2015/16 crop, Rose said.
March cotton on ICE Futures US settled up 0.1 cent, or 0.16 percent, at 61.50 cents per lb, after falling as low as 62.28 cents a lb, its lowest level since Oct. 9. Total futures market volume rose by 832 to 29,225 lots. Data showed total open interest fell 1,272 to 185,112 contracts in the previous session.
The following deals finalised: 1000 bales from Rohri at Rs 5500, 1600 bales from Salehpat at Rs 5500/5525, 200 les from Hasilpur (Low Quality) at Rs 4400, 600 bales from Faqirwali at Rs 5350/5450, 800 bales from Haroonabad at Rs 5350/5500, 400 bales from Fort Abbas at Rs 5400/5500, 400 bales from Yazman Mandi at Rs 5500, 200 bales from Rajanpur at Rs 5500, 400 bales from Mianwali at Rs 5550, 600 bales from Layyah at Rs 5650, 3400 bales from Khanpur at Rs 5650/5675 and 1000 bales from Yazman Mandi at Rs 5675, 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 11-01-2016
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37.324 kg 5,400 135 5,535 5,485 +50
Equivalent
40 kgs 5,787 145 5,932 5,879 +53
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