Mills away from normal business on cotton market

Mills on lack of buying interest, stayed away from the normal business on the cotton market on Saturday, dealers said. The official spot rate was unchanged at Rs 7,500, they added. In ready session, nearly 2,600 bales of cotton changed hands between 6800-7650, they said. In both Sindh and the Punjab, seed cotton prices were same at Rs 2800 and Rs 3500, they said.
According to the market sources, the ginners were keen to sell their stocks but the mills and spinners preferred to be on the sideline as prices were not matching with their psychological levels. The main concern among the buyers is delay in the issuance of Statuary Release Orders (SRO), they said and adding that it looks the business activity may not pick up in the absence of supportive factor.
It is most probably that the government wants to provide some supports to the growers and ginners. Cotton Analyst, Naseem Usman said that prices may not fall sharply, if cotton arrivals started from India.
Adds Reuters: ICE cotton futures rose for a second day on Thursday and traded within sight of a near four-year peak touched last week, helped by buying from speculators and mills. The most active ICE cotton contract for March expiry settled up 0.49 cent, or 0.60 percent, at 82.63 cents per lb. It traded within a range of 81.82 and 83.94 cents a lb. Total futures market volume rose by 22,894 to 46,377 lots.
The following deals reported: 600 bales of cotton from Jalalpur at Rs 7500, 1000 bales from Yazman Mandi at Rs 7650, 400 bales from Kachiwala at Rs 6800 and 600 bales from Haroonabad at Rs 6825, 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     Ex-Karachi  Ex. KHI. As   Ex-Karachi

                                                  on 18.01.2018

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37.324 kg          7,500      145         7,645         7,645           NIL

Equivalent

40 kgs             8,038      155         8,193         8,193           NIL

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