Cotton market: wait-and-see attitude adopted by mills, spinners

12 Jan, 2016

A subdued business was seen on the cotton market on Monday as wait-and-see mode adopted by the mills and spinners on lack of buying interest, dealers said. The official spot rate was unchanged at Rs 5,350, dealers said. In Sindh, seed cotton prices were at Rs 1800 and Rs 3000 and in the Punjab, rates were at Rs 2200 and Rs 3200, they said.
In the ready business, around 4000 bales of cotton changed hands between Rs 4175 and Rs 5500, they said. Financial crisis among buyers, besides, slow demand in the foreign countries caused fall in daily off-take, they said. Cotton analyst, Naseem Usman said that in the world market, prices of cotton are falling and locally financial problem is not encouraging mills to make big deals. He said that there are so much expectations from the Heilm Textile in Frankfurt, many feel rise in booking orders to give a boost to the business activity.
The following deals finalised: 1200 bales from Shahdadpur at Rs 4175-4575, 1586 bales from Sakrand at Rs 5150, 400 bales from Haroonabad at Rs 5400, 400 bales from Vehari at Rs 5500 and 600 bales from Mianwali at Rs 5500, dealers 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 09-01-2016
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37.324 kg 5,350 135 5,485 5,485 NIL
Equivalent
40 kgs 5,734 145 5,879 5,879 NIL
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