Trade activity came under pressure on the cotton market on Friday amid easy supply, dealers said. The official spot rate was unchanged at Rs 5900, dealers said. In Sindh, seed cotton prices were same at Rs 2200-3050, they said, in Punjab, phutti rates were at Rs 2800 and Rs 3200, as per 40 kg, they added, In ready business, around 11,000 bales changed hands between Rs 5375-6200, they said.
Market sources said that buyers were on the sidelines during the comfortable supply of cotton. Cotton analyst, Naseem Usman said that after the arrivals of the Pakistan Cotton Ginners Association (PCGA) arrival figures prices eased slightly and it appears that rates may continue to decline in the near future. Other experts said that under the circumstances, the ginners likely to adopt restricted selling policy to avoid huge losses.
Reuters adds: Cotton futures fell on Thursday, registering a more than three-week low during the session, on speculator liquidation as index funds continued to roll positions. The natural fibre market also took stock of weekly export sales data from the US Department of Agriculture, which showed net upland sales totalled 160,400 running bales (RB) of cotton for the week ended October 27, up 24 percent from the previous week. Exports were down 25 percent, however, from the prior 4-week average.
The following deals reported: 1000 bales from Shahdadpur at Rs 5375/5400, 1000 bales from Sanghar at Rs 5400, 600 bales from Tando Adam at Rs 5450, 2000 bales from Khairpur at Rs 5950, 600 bales from Rohri at Rs 6025/6075, 200 bales from Multan at Rs 6000, 600 bales from Yazman Mandi at Rs 6125, 1000 bales from Bahawalpur at Rs 6125/6150, 600 bales from Maroot at Rs 6150, 200 bales from Hasilpur at Rs 6150, 200 bales from Faqirwali at Rs 6175, 400 bales from Sadiqabad at Rs 6150, 200 bales from Fazilpur at Rs 6200 and 200 bales from Lodhran at Rs 6200, 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 03-11-2016
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37.324 kg 5,900 135 6,035 6,035 NIL
Equivalent
40 kgs 6,323 145 6,468 6,468 NIL
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