Prices maintained firm posture on the cotton market on Friday in the process of slow business activity, dealers said. The official spot rate was unchanged at Rs 6450, dealers said. In Sindh, seed cotton prices were higher at Rs 3100-3350, they said. In Punjab, phutti rates were at Rs 3100 and Rs 3575, as per 40 kg, they added.
In the ready session, over 2,000 bales of cotton changed hands between Rs 6100 and Rs 6700, they said. Some brokers observed that volume of business remained thin as ginners were not interest in selling stock at current rates. It was noted that strong demand for fine quality may help rates to retain present levels, they added.
Some other experts said that the arrivals of seed cotton from cotton fields into the ginneries have slowed down which indicating that very little unsold stock left with the ginners. Now, it appeared that as prospects of importing cotton from India has faded, so the spinners would have to explore other markets such as the US markets to import quality lint for meeting their demand, they said.
Buyers of quality lint were facing short supply position, they observed. In addition, cotton analyst, Naseem Usman was of the view that spinners were jitters as confusions prevailed regarding the export incentive package announced by Prime Minister Nawaz Sharif on January 10.
Reuters adds: ICE cotton futures rose in thin volume trading to hit a one week high on Thursday, ahead of the US export sales data due tomorrow. The March cotton contract on ICE Futures US touched a session high of 73.29 cents a lb, a peak since January 12. The following deals reported: 600 bales from Lodhran at Rs 6700, 800 bales from Dera Gazi Khan at the same rate, 600 bales from Chistian at Rs 6550 and 400 bales from Mianwali at Rs 6100, 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 19-01-2017
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37.324 kg 6,450 135 6,585 6,585 NIL
Equivalent
40 kgs 6,912 145 7,057 7,057 NIL
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