Rates fell on the cotton market on Thursday in the process of trade activity, dealers said. The official spot rate was unchanged at Rs 5,250, dealers said. In Sindh, seed cotton prices were at Rs 1500-2700, and in Punjab prices at Rs 1800 and Rs 2800, they said.
In the ready business, over 6000 bales of cotton changed bands at Rs 4900-5400, they said. Most of the leading buyers kept on the sidelines due to lack of buying interest, experts said. They said that despite the slow demand of cotton, India may increase cotton production. Other analysts said that to observe the fall in cotton and prices locally, several meetings and discussions held recently and now the Karachi Cotton Association (KCA) is going to arrange a one-day conference next week.
In the last discussions, the experts analysed the fact that due to old seeds, the yield of cotton production could not be achieved, causing concerns among the cotton traders, they said. Pakistan Cotton Ginners Association (PCGA) has stressed the need for imposing ban on the import of cotton and cotton yarn from India till the end of cotton season and disposal of around one million bales lying in ginneries as unsold stock, they said.
Reuters adds: Cotton futures retreated on Wednesday after the US government made little change to its largely bearish supply-demand outlook and as worries persisted over the pace at which top consumer China will release its massive inventories.
The US Department of Agriculture slightly lowered its forecast for world inventories of more than 100 million 480-lb bales of cotton by the end of July, as a cut to the 2015/16 global production outlook offset lower demand expectations. The agency maintained its supply-demand forecast for China and the United States. The May contract on ICE Futures US settled down 0.27 cent, or 0.47 percent, at 56.59 cents per lb, after falling as low as 56 cents a lb. The following deals reported: 600 bales of cotton from Dharki at Rs 5450, 400 bales from Yazman Mandi at Rs 4900, 1000 bales from Rahim Yar Khan at Rs 5400 and 1000 bales of cotton from Sadiqabad at Rs 5400, 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 08-03-2016
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37.324 kg 5,250 135 5,385 5,385 NIL
Equivalent
40 kgs 5,626 145 5,771 5,771 NIL
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