Rates traced up on the cotton market on Monday in line with the international trend, dealers said. The official spot rate was unchanged at Rs 7,500, they added. Prices of seed cotton in Sindh were available at Rs 3900-4250, while in the Punjab, rates were at Rs 3700-4000, they said.
Approximately 1000 bales of cotton changed hands between Rs 8100-8260, they said. According to the market sources, sluggish business was seen as most of the buyers were on the sidelines due to higher rates. They said that in India, cotton prices went up on strong demand.
Cotton analyst Naseem Usman said that phutti arrivals could not improve, which is indicating that prices may go up sharply in the coming days. He attributed the rise in the rates to increasing concern over the quality factor, yellow spot on the cotton may push further higher. The growers and ginners were also not keen to sell their stock at the present levels, in expectations of better profit in days to come, he added.
The ginners have nearly 50-60 thousand bales of cotton from old stock, but they (sellers) did not show any interest in selling due to short crop news, other brokers said. Following deals of new crop were reported: 1000 bales of cotton from Shahdadpur, Mirpur, Sanghar and Tando Adam sold at 8100-8260, 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 23-06-2018
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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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