Prices moved up moderately on the cotton market on Wednesday in the process of rising demand by spinners, experts confirmed on phone. The official spot rate was up by Rs 50 to Rs 5,450, dealers said. In Sindh, prices of seed cotton were at Rs 2000 and Rs 3000 and in the Punjab, rates were at Rs 2300 and Rs 3150, they informed this in a telephonic discussion. In the ready business, around 8000 bales of cotton changed hands between Rs 5385 and Rs 5750, they said.
Market sources said that a number of spinners were keen in fresh buying but higher rates stopped them from making deals in a big way. Cotton analyst, Naseem Usman said that trading activity may be ranged-bound due to rising trend in the rates of fine variety.
To improve performance of cotton growers and farmers, a two-day workshop on avoidance and settlement of cotton dispute by the International Cotton Association (ICA) in Karachi ended on Wednesday.
Reuters adds: Cotton futures hit their lowest levels in 3-1/2 months on Tuesday, with speculators liquidating long positions the day after prices fell below 61.50 cents a pound amid uncertainty about China's potential plans to release its stockpile. March cotton on ICE Futures US settled down 0.19 cent, or 0.31 percent, at 61.41 cents per lb, after falling as low as 60.96 cents a lb, its lowest level since October 9.
Total futures market volume rose by 6,712 to 34,103 lots. Data showed total open interest gained 877 to 192,868 contracts in the previous session. The following deals finalised: 1000 bales of cotton from Mianwali at Rs 5500-5750, 2000 bales from Rahim Yar Khan at Rs 5700, 1800 bales from Sadiqabad at Rs 5600-5700, 400 bales from Faqirwali at Rs 5385, 1000 bales from Yazman Mandi at Rs 5450 and 600 bales from Fort Abbas at Rs 5385, 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 26-01-2016
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37.324 kg 5,400 135 5,535 5,535 NIL
Equivalent
40 kgs 5,787 145 5,932 5,932 NIL
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