Modest trade activity

Modest trade activity was seen on the cotton market on Thursday amid arrivals of new crop, dealers said.
The official spot rate was unchanged at Rs 7,500, they added. In the ready session, approximately 1200 bales of cotton changed hands between Rs 7500-7950, they said.
Prices of seed cotton in Sindh are available at Rs 3900-4050, and 1500 bales of new cotton crop available at Rs 8000-8200, they said.
Cotton analyst, Naseem Usman said that shortage of irrigation water is severe in both Sindh and Punjab, in the meantime growers and farmers were hoping for likely pre-monsoon rains, which will definitely ease shortage problem.
Other brokers said that the ginners in Sindh and Punjab were facing severe shortage of irrigation water, purchasing generators to overcome on energy crisis.
They also said that power crisis is also creating difficulties for the textile sector. As a result, many ginners slowed down operation at ginning factories, they said.
Despite, irrigation water shortage, farmers and growers were expecting for good crop for next season, they said.
Reuters adds: ICE cotton futures rose nearly 2 percent on Wednesday, helped by short-covering ahead of a weekly export sales report due on Thursday.
The most active ICE cotton contract for December expiry settled up 1.57 cent, or 1.76 percent, at 90.55 cents per lb.
The contract traded within a range of 88.40, the lowest since May 29, and 91.25 cents a lb.
The following deals reported: 800 bales of cotton from Khanpur at Rs 7500 and 400 bales of cotton from Sadiqabad at Rs 7950, 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 06-06-2018

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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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