Prices halted further decline on the back of persisting demand by spinners on Wednesday in the process of trading, dealers said. The official spot rate was unchanged at Rs 6250, dealers said. In Sindh, seed cotton prices were at Rs 2600-3250, they said that in Punjab, phutti rates were at Rs 3000 and Rs 3550, as per 40 kg, they added. In the ready session, over 35,000 bales of cotton changed hands between Rs 5700-6600, they said.
Market sources said that trading activity was normal as spinners keen to buy better quality lint amid rising fears of short supply in the near future. Cotton analyst, Naseem Usman said that cotton arrivals are as usual but quality is not so good. Secondly, cotton arrivals would start declining with the passage of time and import of Indian cotton is difficult, causing jitters among buyers, he added.
According to reports, Pakistan has suspended cotton imports from India, saying shipments failed to fulfil phyto-sanitary certification, threatening the $822 million-a-year trade, government and industry officials told Reuters. Other brokers said that some leading spinners became cautious toward quality, kept on the sidelines to see prevailing developments.
Reuters adds: Cotton futures fell one percent on Tuesday, recording the biggest one-day percentage drop in over two weeks, hurt by weaker demand for US cotton. The March cotton contract on ICE Futures US settled down 0.72 cent, or 1.00 percent, at 71.3 cents per lb.
The following deals reported: 2000 bales from Shahdadpur at Rs 5700/5900, 1000 bales from Sanghar at Rs 5700/6000, 600 bales from Sarhari at Rs 5775, 400 bales from Kazi Ahmed at Rs 5850, 2000 bales from Salehpat at Rs 6200/6250, 2000 bales from Rohri at Rs 6200/6250, 2800 bales from Ghotki at Rs 6500/6575, 2400 bales from Dharki at Rs 6500/6575, 1200 bales from Khanpur Mehar at Rs 6500/6575, 2400 bales from Layyah at Rs 5950/6250, 1800 bales from Hasilpur at Rs 6250/6500, 1800 bales from Bahawal Nagar at Rs 6300/6350, 400 bales from Bakhar at Rs 6325, 400 bales from Chistian at Rs 6350, 400 bales from Duniyapur at Rs 6400, 1400 bales from Haroonabad at Rs 6400, 400 bales from Ahmedpur at Rs 6500, 600 bales from Noorpur at Rs 6500, 1200 bales from Sadiqabad at Rs 6500, 3000 bales from Rahim Yar Khan at Rs 6500 and 800 bales from Yazman Mandi at Rs 6500/6600, 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 29-11-2016
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37.324 kg 6,250 135 6,385 6,435 NIL
Equivalent
40 kgs 6,698 145 6,843 6,843 NIL
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