Most of the leading buyers kept on the sidelines on the cotton market on Friday ahead of the Pakistan Cotton Ginners Association (PCGA) fortnightly report due shortly, dealers said. The official spot rate was unchanged at 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 2200 and Rs 3100, they said.
In the ready business, around 7000 bales of cotton changed hands between Rs 5150 and Rs 5700, they said. According to the market sources, no major change was seen in the present outlook except lack of buying interest among most of the leading buyers ahead of the PCGA fortnightly report. Cotton analyst, Naseem Usman said that some needy mills and spinners took interest in fresh buying to replenish their stock. Some experts said that exports of textile goods have shaken up the confidence of the entire industry. The cotton production is already short by around 4.5 million bales and nearly 1.5 million bales are lying unsold with the ginners, they said. Besides, they observed that the textile industry is no doubt in crisis, but the government is not realising the situation to resolve the issues related to the cotton.
Reuters adds: Cotton futures rose for the first time in four sessions on Thursday after a large removal of cotton stocks from exchange-certified warehouses signalled physical demand at current low price levels, as commodities prices rose more broadly. March cotton on ICE Futures US settled up 0.5 cent, or 0.82 percent, at 61.36 cents per lb. It traded within a range of 60.67 and 61.52 cents a lb.
The following deals finalised: 400 bales of cotton from Nawabshah at Rs 5265, 800 bales from Daur at Rs 5375, 1000 bales from Rohri at Rs 5500, 200 bales from Multan at Rs 5150, 400 bales from Mianwali at Rs 5350, 600 bales from Faqirwali at Rs 5400, 2000 bales from Haroonabad at Rs 5400, 600 bales from Sadiqabad at Rs 5650 and 1000 bales from Rahim Yar Khan at Rs 5700, 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 28-01-2016
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37.324 kg 5,450 135 5,585 5,585 NIL
Equivalent
40 kgs 5,841 145 5,986 5,986 NIL
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