Prices stabilised on the cotton market on Thursday as spinners continued buying of low variety in the absence of quality lint in the process of trading, dealers said. The official spot was unchanged at Rs 5,400, dealers said. In Sindh, prices of seed cotton were at Rs 2000 and Rs 3000, in the Punjab, rates were at Rs 2300 and Rs 3100, they said.
In the ready business, over 8000 bales of cotton changed hands between Rs 4450 and Rs 5675, they said. Some brokers said that leading spinners were looking active in covering their immediate needs. They observed that the spinners were worried about due to short supply of fine quality. Other brokers said that in the Pakistan Cotton Ginners Association (PCGA) report, the cotton output till February 1, dropped 33.41 percent to 9.612 million bales during the current session. Cotton analyst, Naseem Usman said heavy rains and pest attacks played havoc with the crop, to compensate local requirement, import of cotton from India continued.
Reuters adds: Cotton futures fell on Wednesday despite a sharply weaker dollar and strength elsewhere in the commodity complex as investors hesitated to increase long positions ahead of the looming index fund roll, when large funds move positions forward from the front-month. March cotton on ICE Futures US settled down 0.36 cent, or 0.58 percent, at 61.94 cents per lb. It traded within a range of 61.77 and 62.59 cents a lb. Total futures market volume fell by 4,576 to 43,027 lots. Data showed total open interest gained 2,126 to 197,632 contracts in the previous session.
The following deals reported: 200 bales from Mirpur Bethro at Rs 4450, 800 bales from Shahdadpur at Rs 4525, 400 bales from Sethraja at Rs 5550, 1000 bales from Dera Ghazi Khan at Rs 5300, 400 bales from Multan at Rs 5400, 1000 bales from Yazman Mandi at Rs 5400, 1000 bales from Mianwali at Rs 5450-5500, 400 bales from Khanpur at Rs 5650, 3000 bales from Rahim Yar Khan at Rs 5650 and 400 bales from Sadiqabad at Rs 5675, 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 03-02-2016
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37.324 kg 5,400 135 5,535 5,535 NIL
Equivalent
40 kgs 5,787 145 5,932 5,932 NIL
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