Less buying interest by the main participants left the cotton market deserted look on Tuesday, dealers said. The official spot rate was unchanged at Rs 5500, dealers said. Cotton analyst, Naseem Usman said that instead of new taxes, the businessmen and traders were expecting some relief in the tax, but in vain. Most of the cotton traders even industrialists are still in shock, there were nothing in the budget, so that they preferred to keep on sidelines, other analysts said. At the end of this month, seed cotton arrivals are expected, besides, sporadic rain in the cotton belt is beneficial for the crop, they added.
Reuters adds: ICE cotton futures rose on Monday, supported by declines in the US dollar and a US government report issued Friday after market close that showed speculators had their smallest net long position since February. Cotton contracts for December settled up by 0.79 cent on Monday, a 1.2 percent gain, to 65.34 cents per pound. It traded within a range of 64.44 and 65.5 cents a pound. Specs cut net long position to 14,708 from 21,409 in the latest week. The December contract's premium to the July contract remained unchanged at 0.54 cent per lb.
Total futures market volume fell by 549 to 31,790 lots. Data showed total open interest fell 1,864 to 185,023 contracts in the previous session. Only one deal was reported till our going to the press, 600 bales from Burewala at Rs 5700 (conditions), 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 1-1/32"
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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 08.06.2015
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37.324 Kgs 5,500 150 5,650 5,650 Nil
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Equivalent
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40 Kgs 5,894 160 6,054 6,054 Nil
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