Prices maintained higher trend on the cotton market on Friday in the process of trading, dealers said. The official spot rate was unchanged at Rs 6800, they said. In Punjab prices of phutti were unchanged at Rs 3750-3800, as per 40 kg, they said. In the ready season, nearly 9000 bales of cotton changed hands between Rs 6800-7050, they added.
Cotton analyst, Naseem Usman said that the ginners who were not keen to sell limited stock of quality lint, obliging only those deals which were matching with the psychological levels. The little stocks of fine quality are coming down with the passage of time, ginners were now striving to get higher prices, other brokers shared the same views.
For the rest of the season, it is expected that prices to maintain firm posture due to said reason, they said. Trading activity picked up as a result of continued fall in the world markets, coupled with higher offerings, they said. According to reports, despite falling trend in exports, the loans to textile industry soared. Whereas, the Central Executive Committee of Pakistan Cotton Ginners Association (PCGA) has demanded a bailout package for ginning sector like textile & farmers' relief packages.
China will auction cotton from state reserves from March 6 to August 31, the China Cotton Textile Association said on its website on Thursday. China's National Development and Reform Commission announced last November that Beijing would start auctioning cotton reserves in March. Besides, reports showing that the Fed to raise rates during the current month, other experts said.
Reuters adds: The New York cotton futures were down on Thursday on falling demand. The following deals reported: 400 bales from Dharanwala at Rs 6800, 600 bales from Hasilpur at Rs 6850, 200 bales from Bahawal Nagar at Rs 6900, 400 bales from Lodhran at Rs 6900, 4000 bales from Bahawalpur at Rs 7000, 891 bales from Fort Abbas at Rs 7000 and 2000 bales from Duniyapur at Rs 7050, they 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 09.03.2017
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37.324 kg 6,800 135 6,935 6,935 NIL
Equivalent
40 kgs 7,288 145 7,433 7,433 NIL
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