The firmness prevailed on the cotton market on Wednesday as the both mills and spinners strived to replenish their stocks, dealers said. The official spot rate was unchanged at Rs 6700, they said. In Sindh, seed cotton prices were at Rs 3200-3500, they said. In Punjab, phutti rates were at Rs 3300 and Rs 3800, as per 40 kg, they added.
In the ready session, over 7,000 bales of cotton changed hands between Rs 6375 and Rs 7050, they said. They said that cotton prices touched season's peak levels at Rs 7125 due to sustained buying by mills and spinners. Cotton analyst, Naseem Usman said that the depleting cotton stocks with spinners and shortage of quality cotton also triggered strong buying from mills, who were running short of cotton stocks.
Other experts said that the Indian cotton exporters cancelled contract deals with Pak importers due to soaring prices in the international market. Indian cotton prices increased by 13 percent during the last two months, they said and adding that Indian cotton growers may face shortage in the coming days.
Adds Reuters: ICE cotton futures edged lower on Tuesday in subdued trading, weighed down by a firmer dollar. The May contract, which touched the highest since July 2014 on Monday, is likely to retrace to 74 or 75 cents in the near-term, Rose said. The May cotton contract on ICE Futures US settled down 0.26 cent, or 0.33 percent, at 77.95 cents per lb. It traded within a range of 77.52 and 78.37 cents a lb.
The following deals reported: 600 bales from Shahdadpur at Rs 6375, 600 bales from Khanpur Mahar at Rs 7000, 600 bales from Yazman Mandi at Rs 7000, 400 bales from Fazilpur at Rs 7000, 5861 bales from Khanpur at Rs 7000, 2600 bales from Rahim Yar Khan at Rs 7000, 400 bales from Mian Channu at Rs 7050 and 800 bales from Haroonabad at Rs 7050, 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 1-1/16"
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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 13-02-2017 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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