Listless business on cotton market

Trading activity could not pick up on cotton market amid cautious selling by ginners due to little stock with them, dealers said on Monday. The official spot rate was unmoved at Rs 6700, dealers said. In Sindh, seed cotton prices were at Rs 3200-3550, they said. In Punjab, phutti rates were at Rs 3300 and Rs 3900, as per 40 kg, they added.
In the ready session, only one deal of 600 bales from Rahim Yar Khan done at Rs 6900, they said Market sources said that the ginners were not interested in fresh selling due to limited stocks of quality lint. But on the other hand, cotton analyst, Naseem Usman observed that the mills and spinners taking interest in fresh buying of fine quality to keep themselves from futures losses.
Huge gap between consumption and production is indicating that country has to import cotton to meet demand, they said. Other experts said that keeping in view the outlook of cotton business most of the leading traders were moving cautiously. To meet local demand, they said that country has finalised deals to import 22 lac bales of cotton from US, Africa and India. Despite import of cotton, the rates in local market would go up with slight increase in the coming days.

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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 1-1/16"

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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    Expenses    Ex-Karachi  Ex. KHI, As   Ex-Karachi

                                                  on 04-02-2017   in Rupees

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37.324 kg         6,700      135        6,835         6,835             NIL

Equivalent

40 kgs            7,180      145        7,325         7,325             NIL

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