Forward buying was witnessed on the cotton market on Saturday in the process of improved trading activity, dealers said. Official spot rate was unchanged at Rs 7600, they added. In both Sindh and Punjab seed cotton prices were at Rs 2800-3100, they said. In the ready session, over 5000 bales of cotton finalised between Rs 5650-7900, they said. Market sources said that some spinners indulged in forward buying of lint cotton to replenish their stock. Besides, they observed that some of them indulged in panic buying as a result of appreciation in dollar's value versus the rupee.
in the meantime, the ginners, who have limited stock of cotton were almost reluctant in fresh selling in anticipation of further increase in their more profit in the coming days, cotton analyst, Naseem Usman said. In fact, the spinners were confused under the circumstance because reports are coming from the cotton belt that sowing is slow in Lower Sindh due to shortage of irrigation water, he added.
Other brokers said that despite better cotton production during the current year, spinners were importing fine quality cotton to meet their requirements. Besides, after the sharp devaluation of the rupee, the import of cotton will be costly, so that the spinners were trying to import as much as they can, they said.
Adds Reuters: Cotton prices tended lower in the international markets.
The following deals reported: 600 bales of cotton from Sanghar at Rs 5650, 400 bales from Khanpur at Rs 7900, 200 bales from Liaquatpur at Rs 7900, 400 bales from R.Y.K at Rs 7800/7900, 200 bales from Fazilpur at Rs 7350, 600 bales from Lodhran at Rs 6600, 200 bales from Yazman Mandi at Rs 6500, 1600 bales from Haroonabad at Rs 7000 (Condition) and 400 bales from Chani Goth at Rs 7700, 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 22.03.2018
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37.324 kg 7,600 145 7,745 7,745 NIL
Equivalent
40 kgs 8,145 155 8,300 8,300 NIL
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