Thin business was witnessed on the cotton market on Wednesday as a few mills showed interest in fresh buying, 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 3000 bales of cotton changed hands between Rs 6700 and Rs 7100 (conditional), they said.
According to the market sources, mills have already done big deals to meet their urgent requirements, cotton analyst, Naseem Usman said that a deal of new crop for 2017-18 of seed cotton of 6000 kg (six tones) for June 5-20 delivery done at Rs 3400 (per 40 kg). Despite short supply position, the ginners were keen to sell cotton at the present levels just to keep away from future losses. Quality of cotton affected by hot weather, dealers said. They also said that the deals of new season have started, this is a factor, which is propelling growers and ginners to dispose of old stock. In the world markets, prices are firm except NY cotton futures, which fell in the process of trading.
Reuter adds: ICE cotton futures held nearly flat on Tuesday as market participants remained cautious ahead of a federal acreage report due later this week. The market is likely to stay quiet until the crop plantation report is out, according to Rogers Varner, president of Varner Brokerage in Cleveland, Mississippi. The US Department of Agriculture will release its prospective crop plantings report on Friday. The May cotton contract on ICE Futures US settled down 0.06 cent, or 0.08 percent, at 76.88 cents per lb. It traded within a range of 76.70 and 77.51 cents a lb The following deals reported: 2000 bales of cotton from Yazman Mandi at Rs 6700-6800, 600 bales from Rahim Yar Khan at Rs 6975 and 400 bales from Fazilpur at Rs 7100 (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 28.03.2017
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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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