Prices improved slight on the cotton market on Friday amid cautious buying by mills and spinners, 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 2800 and Rs 3500, as per 40 kg, they added.
In the ready session, over 8,000 bales of cotton changed hands between Rs 6100 and Rs 6600, they said. Market sources said that a kind of dullness prevailed as the several leading buyers not taking interest in fresh buying and on the other hand, growers were not in a hurry to dispose of their stock in expectations of further rise in rates. Cotton analyst, Naseem Usman said that firm trend in the international market also a factor behind the steadier trend in the local market.
Besides, some local farmers were of the opinion that cotton imports from India to destroy local growers. They also said that the government did not fix support price for cotton, leaving them at the mercy of textile millers, who would procure domestic cotton at their desired rates.
Adds Reuters: ICE cotton futures edged upward in muted trading on Thursday, to settle higher for a second straight day, just ahead of the holiday weekend. March cotton contract on ICE Futures US settled up 0.07 cent, or 0.10 percent, at 70.2 cents per lb. It traded within a range of 69.76 and 70.77 cents a lb. The following deals reported: 1400 bales from Dharki at Rs 6400, 600 bales from Hasilpur at Rs 6100, 400 bales from Layyah at Rs 6150, 1600 bales from Dharanwala at Rs 6325, 600 bales from Faqirwali at Rs 6350, 800 bales from Rahim Yar Khan at Rs 6450, 400 bales from Khanewal at Rs 6475, 600 bales from Bahawalpur at Rs 6500, 600 bales from Vehari at Rs 6500/6525, 810 bales from Rajanpur at Rs 6550 and 400 bales from Shujabad at Rs 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 22-12-2016
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37.324 kg 6,250 135 6,385 6,385 NIL
Equivalent
40 kgs 6,698 145 6,843 6,843 NIL
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