Prices of Phutti (seed cotton) touched season's record level on the cotton market on Friday as buyers were active to replenish their stock, dealers said. The official spot rate recovered by Rs 100 to Rs 6600, dealers said. In Sindh, seed cotton prices were at Rs 3100-3450, they said. In Punjab, phutti rates recovered slightly at Rs 3100 and Rs 3700, as per 40 kg, they added.
In the ready session, over 7,000 bales of cotton changed hands between Rs 5550 and Rs 7000, they said. According to the market sources, after announcement of SROs, cotton yarn and phutti prices are gaining ground due to improvement in demand.
Market sources also said that global prices influenced the local market as mills and spinners both were trying to replenish the stock of lint cotton, which was short in demand. Other analysts observed that buyers were ready to get hold of big lots of quality cotton but on the other hand, ginners having limited stock of cotton were seemed to be in no hurry to disposed of their stock at current rate, probably they are anticipating that rates to go up, instead of declining.
Cotton analyst, Naseem Usman sharing the opinion, said that after the long-awaited statutory mills and spinners got some satisfactions and expecting for betterment in the volume of business.
Adds Reuters: ICE cotton futures rose for the second straight session on Thursday, supported by strong export sales data but gains were capped as Mexico's president cancelled a planned summit with his US counterpart Donald Trump. The March cotton contract on ICE Futures US settled up 0.31 cent, or 0.42 percent, at 74.19 cents per lb. It traded within a range of 73.67 and 74.93 cents a lb.
The following deals reported: 200 bales from Shahdadpur at Rs 5550, 700 bales from Mirpurkhas at Rs 6100, 400 bales from Dour at Rs 6475, 2000 bales from Dharki at Rs 6950, 600 bales from Rajanpur at Rs 7000, 2400 bales from Rahim Yar Khan at Rs 6800-6900, 1000 bales from Dera Gazi Khan at Rs 6830, 500 bales from Fort Abbas at Rs 6585-6650 and 600 bales from Mianwali at Rs 6450, 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 1-1/16"
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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 Expenses Ex-Karachi Ex. KHI, As Ex-Karachi
on 26-01-2017 in Rupees
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37.324 kg 6,600 135 6,735 6,635 + 100/-
Equivalent
40 kgs 7,073 145 7,218 7,111 + 107/-
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