Cotton market Slow business as ginners raise asking prices

Trading activity could not pick up pace on the cotton market on Tuesday as the ginners raised asking prices in anticipation of getting better rates, dealers said.
The official spot rate was unchanged at Rs 6375, dealers said. In Sindh, seed cotton prices were at Rs 3000-3300, they said. In Punjab, phutti rates stayed put at Rs 3200 and Rs 3550, as per 40 kg, they added.
In the ready session, around 3,000 bales of cotton changed hands between Rs 6400 and Rs 6700, they said.
Market sources said that trading activity came under pressure since the week started in the absence of fresh leads.
Cotton analyst, Naseem Usman said that short availability of cotton lint is helping rates to keep present levels. Some leading buyers were on the sidelines just to observe latest position and partly because of ahead of the Pakistan Cotton Ginners Association (PCGA) fortnightly report, he said.
The ginners were avoiding to selling in expectation of attractive profit in the coming days, he added.
The following deals reported: 600 bales of cotton from Rahim Yar Khan at Rs 6700, 600 bales from Khanewal at Rs 6700, 800 bales from Haroonabad at Rs 6550/6600 and 400 bales from Hasilpur at Rs 6400, 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 16-01-2017

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37.324 kg          6,375      135         6,510       6,510             NIL

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Equivalent

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40 kgs             6,832      145         6,977       6,977             NIL

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