Prices showed firmness on the cotton market on Friday in the process of improved business activity, 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 11,000 bales of cotton changed hands between Rs 6150-6575, they said. Some analysts said that prices maintained firm posture due to rising trend in the international markets. In China rates are firm and prices followed the same trend in India, particularly after the decision by the Cotton Corporation of India (CCI) to purchase local cotton, they said.
Cotton analyst, Naseem Usman said country may achieve over 10 million bales of cotton during the current year. Some experts said that the revival of buying interest seen in the market as spinners rushed to replenish their stocks. Besides, reports appeared that India is becoming a major supplier of cotton yarn to Bangladesh and China. Local spinners, who are facing losses as a result of fall in exports, worried for losing their traditional market.
Reuters adds: ICE cotton futures jumped over one percent on Thursday, hitting a two-week high, supported by a weaker dollar and short-covering by investors ahead of the last trading session of the year. "Today's (Thursday's) trade relates to low volume and end of the year adjustments. The March cotton contract on ICE Futures US hit a session high of 71.14 cents a lb, a peak since December 16.
The following deals reported: 1000 bales from Johl at Rs 6150, same figure from Rohri at Rs 6250-6300, 600 bales from Salehpat at Rs 6275, 400 bales from Bakkar at Rs 6225, same figure from Haroonabad at Rs 6350, same number from Chistian, 600 bales from Hasilpur at the same price, 400 bales from Sher Sultan at Rs 6400, 600 bales from Bahawalpur at Rs 6440, 400 bales from Fort Abbas at Rs 6450, same number from Yazman Mandi at Rs 6500, same figure from Multan, 800 bales from Rahimyar Khan at the same rate and 2800 bales from Khanewal at Rs 6575, 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 29-12-2016
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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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