Hectic trade activity was witnessed on the cotton market on Tuesday as some mills indulged in forward buying as ginners were ready to oblige them, dealers said. The official spot rate was unchanged at Rs 6750, they said. In Punjab, prices of seed cotton were at Rs 3700-3800, as per 40 kg, they said.
In ready session, around 22000 bales of cotton changed hands between Rs 6900-6950, they said. Cotton analyst, Naseem Usman said that growers from Shahdadpur sold 6000 kg of seed cotton to ginners for June 5-20 delivery (per kg Rs 3400 for the new season.
Commenting on the rise in volume of business today, he also said that the ginners were a little bit in a hurry, so that they preferred to sell at current levels as prices were matching with their psychological levels. Other brokers said that there is acute shortage of water for the new season, may cause decline in crop, particularly cotton production.
ICE cotton futures edged lower on Monday following a slide in agricultural commodities, which saw US wheat, corn and soybean futures touch their lowest this year. The May cotton contract on ICE Futures US settled down 0.53 cent, or 0.68 percent, at 76.94 cents per lb. It traded within a range of 76.90 and 77.73 cents a lb. Total futures market volume fell by 3,726 to 24,346 lots.
The following deals reported: 5000 bales of cotton from Karachi (Exporter to Mill) at Rs 7000, 1000 bales from Hasilpur at Rs 6850/6900, 400 bales from Liaquatpur at Rs 6785, 400 bales from Kabirwala at Rs 6900, 400 bales from Chistian at Rs 6900/6925, 1000 bales from Multan at Rs 6925, 1248 bales from Faqirwali at Rs 6925/6950, 400 bales from Ahmedpur at Rs 6950, 2600 bales from Sheher Sultan at Rs 6950, 2000 bales from Sadiqabad at Rs 6950, 3400 bales from Rahim Yar Khan at Rs 6975, 400 bales from Shujabad at Rs 7000, 400 bales from Fort Abbas at Rs 7000, 1200 bales from Lodhran at Rs 7000 and 1400 bales from Hasilpur at Rs 7100/7300 (Conditional), 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 1-1/16"
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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 Ex-Karachi Ex. KHI. As Ex-Karachi
on 27.03.2017
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37.324 kg 6,750 135 6,885 6,885 Nil
Equivalent
40 kgs 7,234 145 7,379 7,379 Nil
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