Bears dominated the cotton market on Tuesday as prices slid owing to lack of buying interest from leading buyers, dealers said. The official spot fell by Rs 50 to Rs 5,350, dealers said. In Sindh, prices of seed cotton low type was lower by Rs 200 to Rs 1800 and Rs 2900, in the Punjab, rates were down by Rs 300 to Rs 2000 and Rs 3050, they said.
In the ready business, around 5,000 bales of cotton changed hands between Rs 4710 and Rs 5650, they said. According to the market sources, easier trend in the international market, local holidays in China depressed the leading buyers. They said that under the circumstances, sellers were keen to dispose of remaining stock but, spinners and mills kept on the sideline in the absence of motivating factors. Generally, the local market was in grip of uncertainties due to fall in prices and business activity, as well, cotton analyst, Naseem Usman said.
Reuters adds: Cotton futures fell to the lowest in more than four months on Monday, weighed down by bearish sentiment in global markets and liquidation as traders awaited direction from the US government supply and demand report due on Tuesday.
US cotton farmers are expected to boost acreage by 6.2 percent this year as weak market prices for competing crops including corn and soybeans lead them to devote more area to fibre, the National Cotton Council said.
The March cotton contract on ICE Futures US settled down 0.37 cent, or 0.62 percent, at 59.60 cents per lb after hitting 58.75 cents per lb, a contract low and the weakest price since late September. The following deals reported: 200 bales from Pak Pattan at Rs 4710, 400 bales from Vehari at Rs 4850, 600 bales from Haroonabad at Rs 5300 and Rs 5500, 200 bales from Bahawal Nagar at Rs 5350, 400 bales from For Abbas at Rs 5350-5425, 200 bales from Ghazi Goth at Rs 5400, 400 bales of cotton from Liaquatpur at Rs 5475, same number from Mianwali at Rs 5575, equal number from Khanewal at Rs 5625 and same number from Darya at Rs 5650, dealers 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 08-02-2016
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37.324 kg 5,350 135 5,485 5,535 -50
Equivalent
40 kgs 5,734 145 5,879 5,932 -53
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