Prices extended slide on the cotton market on Friday in the process of modest trading, dealers said. The official spot rate dropped further Rs 50 to Rs 5,200 dealers said. In the Punjab seed cotton prices were at Rs 2400 and Rs 3000, they said. In the ready business, nearly 7,000 bales finalised between Rs 4700-5450, they said.
According to the market sources, quality cotton is not available now and the spinners were keen to lay hand over the fine type and their psychological level. Cotton analyst, Naseem Usman said that the cotton growers were shifting their position to another crop due to losses. He also said that the Pakistan Cotton Ginners Association (PCGA) final arrival figure is due shortly, which may help stabilise the prices in the coming days. Other brokers said that prices in the global markets are firm due to short supply but prices of low quality cotton could fall in the local markets.
Reuters adds: Cotton futures rose to a two-week high on Thursday, as expectations of unfavourable weather conditions and positive export sales data offset a slightly bearish US government planting intentions report. The front-month May contract recovered after falling 0.38 cent, or 0.7 percent following the report, which forecast that US farmers will plant 9.562 million acres of cotton this year, slightly above trade expectations at 9.412 million acres.
The front-month May contract on ICE Futures US settled up 0.77 cent, or 1.34 percent, at 58.44 cents per lb after hitting 57.01, the lowest in about two weeks. The following deals finalised: 400 bales of cotton from Lodhran at Rs 4600, 200 bales from Burewala at Rs 4900, 400 bales from Shujabad at Rs 4950, 600 bales from Jalalpur at Rs 5300 and 600 bales from Sadiqabad at Rs 5350, 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 31-03-2016
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37.324 kg 5,200 135 5,335 5,385 - 50
Equivalent
40 kgs 5,573 145 5,718 5,771 - 53
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