Rates improved modestly on the cotton market on Friday as needy spinners showed interest in purchasing of quality lint, dealers said. The official spot rate was higher by Rs 50 to Rs 5,300 dealers said. In Sindh, seed cotton prices were at Rs 2000-2200, and in Punjab prices at Rs 2500 and Rs 2900, they said.
In the ready business, around 7,000 bales of cotton changed hands between Rs 4300 and Rs 5500, they said. Some experts said that trade activity improved due to fresh buying of quality lint. Spinners were keen to make deals as much as they want but short supply of fine type disappointing them, they observed.
Delay in early sowing of cotton crop in Punjab created nervousness among spinners who were running short of cotton stock, they said. In the meantime, they noted that after Holi festival, business activity could pick up, despite the fact that supply of quality lint is almost drying up.
Reuters adds: Cotton futures fell on Thursday, halting three days of gains, on a weak US export sales report ahead of the Easter weekend holiday in the United States.
"Historically, speculators are reluctant to hold a long position ahead of a long weekend, particularly given China's history of making market moving announcements, sales, or purchases on holidays and weekends," said Barry Bean, a cotton buyer based in Gideon, Missouri. Cotton trading on ICE Futures US will be closed on Friday for the Good Friday holiday.
Sales of upland cotton totalled 84,400 running bales for the week ended March 17, down 63 percent from the previous week, government data showed. The front-month May contract on ICE Futures US settled down 0.67 cent, or 1.15 percent, at 57.72 cents per lb, after touching a low of 57.33 cents. The contract ended the week up about 0.98 percent.
The following deals finalised: 400 bales of cotton from Mirpur Mathilo at Rs 5450, 1000 bales from Dharki at Rs 5485, 200 bales from Smunddri at Rs 4900, 600 bales from Lodhran at Rs 5025, 400 bales from Faqirwali at Rs 5325, 500 bales from Hasilpur at Rs 5500 and 4000 bales from Sadiqabad (conditional) at Rs 5700, 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 24-03-2016
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37.324 kg 5,300 135 5,435 5,385 +50
Equivalent
40 kgs 5,680 145 5,825 5,771 +54
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