Prices maintained rising trend on the cotton market on Saturday in the process of trading, dealers said. The official spot rate was higher by Rs 50 to Rs 6750, they said. In Punjab prices of phutti were unchanged at Rs 3500-3750, as per 40 kg, they said. In the ready season, around 11,000 bales of cotton sold at Rs 6800-7150, they added.
According to the market sources, higher trend in the international market helped prices to keep rising trend locally. Cotton analyst, Naseem Usman said that tight supply position is main factor behind the persistent firmness and this trend will continue in the near future.
The other factor for the spinners was the falling stocks of cotton with ginners, who are reported to be holding only 600,000 bales, whereas the next crop was still about the six months away. Other experts said that the cotton picking in Sindh almost completed, in Punjab very little stock left for picking in the field, it is an indication that the country is not getting desired cotton crop figure for the current season.
Some other analysts observed that cost of doing business under circumstances is so high, whereas leading spinners and mills were facing some financial problems. They also said that textile export is not picking up due world recession and partly because of quality factor.
According to Reuters, the New York cotton futures were sharply higher on Friday.
The following deals were reported: 400 bales of cotton from Yazman Mandi at Rs 6800, 1000 bales from Ahmedpur at Rs 6900, 400 bales from Haroonabad at the same level, 600 bales from Hasilpur at Rs 6950, 5075 bales from Sadiqabad at Rs 7000, 3400 bales from Khanpur at the same figure and 200 bales from Jalalpur at Rs 7150, they 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 03-03-2017 in Rupees
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37.324 kg 6,750 135 6,885 6,835 +50
Equivalent
40 kgs 7,234 145 7,379 7,325 +54
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