Not a single deal reported on Saturday as the cotton market is under the grip of post-budget fever, dealers said. The official spot rate was unchanged at Rs 8800, they added. Seed cotton per 40kg from Lower Sindh was available at Rs 3900-4000, they said. Binola per maund was available at Rs 1750, they said.
They said that all are worried about imposition of different taxes on products.
Cotton Analyst, Naseen Usman said that since the announcement of federal budget, the market is still facing a kind of uncertainty.
The ginners, who are already under pressure, disappointed over the imposition of 10 percent sales tax, other experts said. Whereas, the textile sector has already rejected the government's move to impose 17 percent sales tax on exports.
In the meantime, about seven factories have partially operated in both Sindh and Punjab, they observed.
Adds Reuters: ICE cotton futures fell 1% on Friday due to a firmer dollar and weak US export sales data.
The most active cotton contract on ICE Futures US, the third-month December contract, fell 0.73 cent, or 1.1%, to 65.70 cents per lb by 2:27 p.m. EDT (1827 GMT).
Total futures market volume fell by 17,303 to 31,178 lots. Data showed total open interest fell 1,609 to 204,435 contracts in the previous session.
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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 14-06-2019
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37.324 kg 8,800 160 8,960 8,960 NIL
Equivalent
40 kgs 9,431 171 9,602 9,602 NIL
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