Cotton prices firm on hectic trade activity

Rates maintained firm posture on the cotton market on Saturday during the sizeable business, 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 13,000 bales of cotton changed hands between Rs 6500 and Rs 6975, they said. Some experts were of the view that demand is rising for quality cotton with the passage of time and this is the only factor which is pushing rates up gradually.
Cotton analyst, Naseem Usman said that exports were not picking up due to high cost of production and facing challenges in the international market. Country may achieve 10.08 million bales of cotton production and reports showing that the spinners have booked 2.3 million bales to meet their requirements, other analysts said.
In India, prices were going up and rates were on the same track in other parts of the world, they added. Adds Reuters: ICE cotton futures inched higher on Friday to settle up for a third straight session on expectations of short-covering by mills, ahead of the first notice day for the March contract.However, the rolling of March longs by speculators and index funds have limited the gains, according to Louis Rose, an independent cotton trader and consultant with Risk Analytics in Memphis.
The following deals reported: 1400 bales of cotton from Ghotki at Rs 6850, 400 bales from Mianwali at Rs 6500, 800 bales from Shujabad at Rs 6670, 323 bales of cotton from Burewala finalised at Rs 6700, 400 bales from Yazman Mandi at the same rate, 600 bales from Faqirwali at Rs 6800, 800 bales from Fort Abbas at Rs 6800, 2200 bales from Haroonabad done at the same rate, 800 bales from Layyah at Rs 6900, 1200 bales from Sadiqabad, 1400 bales from Khanpur at the same rate and 2520 bales from Rahim Yar Khan done at Rs 6900-6975, 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 10-02-2017   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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