Cotton prices higher on renewed buying interest

Prices gained momentum on the cotton market on Wednesday on emergence of renewed buying by mills and spinners, dealers said. The official spot rate was unmoved at Rs 6700, dealers said. In Sindh, seed cotton prices were at Rs 3200-3500, they said. In Punjab, phutti rates were at Rs 3300 and Rs 3800, as per 40 kg, they added.
In the ready session, over 14,000 bales of cotton changed hands between Rs 6100 and Rs 7050, they said. Market sources said that both mills and spinners played an active role in lifting of volume of business today and at the same time a kind of profit-taking also seen during the day, which indicating that prices may not fluctuate sharply in the near future.
In fact, other analysts said that it appears that prices likely to move both ways following the different reports about the size of phutti (seed cotton) arrivals. Reports showing that very little phutti has left in the fields for picking, cotton analyst, Naseem Usman said and adding that there were some speculations that the government has allowed cotton import through the Wagah, which would be beneficial for the Punjab's millers. According to an estimate, nearly 2.3 million bales have been booked to compensate shortage.
Adds Reuter: Cotton futures fell for the third straight session on Tuesday and touched a one-week low on liquidation by speculators and index funds. The March cotton contract on ICE Futures US settled down 0.54 cent, or 0.71 percent, at 75.09 cents per lb. It traded within a range of 75.05, the lowest since Feb 1, and 76.09 cents a lb.
The following deals reported: 400 bales from Pano Aqil at Rs 7000, 1485 bales from Mianwali at Rs 6100/6700, 200 bales from Bahawal Nagar at Rs 6500, 309 bales from Chichawatni at Rs 6650, 200 bales from Bahawalpur at Rs 6700, 800 bales from Fort Abbas at Rs 6750/7000, 2400 bales from Hasilpur at Rs 6800, 1000 bales from Sadiqabad at Rs 6900, 400 bales from Khanewal at Rs 6950, 3400 bales from Rahim Yar Khan at Rs 6900/7000, 1000 bales from Khanpur at Rs 7000 and 1700 bales from Haroonabad at Rs 7025/7050, 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 07-02-2017   in Rupees
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37.324 kg         6,700      135        6,835         6,835             NIL
Equivalent
40 kgs            7,180      145        7,325         7,325             NIL
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