A firm trend was seen on the cotton market on Thursday in the process of moderate business activity, dealers said. The official spot rate was unchanged at Rs 5,350, dealers said. In Sindh, prices of seed cotton low type was lower by Rs 200 to Rs 1600 and Rs 2800, in the Punjab, rates were down by Rs 50 to Rs 2000 and Rs 3000, they said. In the ready business, around 7,000 bales of cotton changed hands between Rs 47750 and Rs 5650, they said.
Some brokers observed that after a short break, needy spinners came back to the market to cover their immediate requirements. Cotton analyst, Naseem Usman said that most of the leading buyers were still on the sidelines in the absence of guiding factors. Other experts said that an uncertainty prevailed on the local market following the persistent weak trend in the world markets.
Negative economic developments played havoc in the globe, he said. Declining trend in the oil and commodities prices the world over, depressed the local leading participants, other analysts said. Lower phutti prices came down due to sluggish demand, besides, recent fall in the NY cotton futures and week-long closure of Far East and Chinese market owing to Lunar New Year also made the sentiments weak they added.
Reuters adds: Cotton futures edged higher on Wednesday, recovering from one-year lows hit a day earlier as investors covered bearish bets after five straight sessions of losses, even as concerns mounted about growing excess inventories.
Prices touched their lowest since late January last year after the US Department of Agriculture warned of bigger global stocks amid lower demand. The March cotton contract on ICE Futures US settled up 0.24 cent, or 0.41 percent, at 58.88 cents per lb, after hitting 58.94 cents a lb.
The following deals reported: 1200 bales from Dharki at Rs 5500, 400 bales from Dunyapur at Rs 4775, 600 bales from Faqirwali at Rs 5300, 2000 bales from Khanewal at Rs 5425, 1600 bales from Chowck Monda at Rs 5425, 400 bales from Bahawalpur at Rs 5600, 400 bales from Sadiqabad at Rs 5600 and 200 bales from Mianwali 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 10-02-2016
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37.324 kg 5,350 135 5,485 5,485 NIL
Equivalent
40 kgs 5,734 145 5,879 5,879 NIL
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