Volume of business slowed down on Thursday ahead of the Pakistan Cotton Ginners Association (PCGA) report, dealers said. The official spot rate halted further erosion, holding overnight level at Rs 6400, they said. In the ready session, over 13,000 bales of cotton changed hands between Rs 6050-6700, they said. In Sindh seed cotton prices were at Rs 2700-3200, in the Punjab rates were at Rs 2800-3300, as per 40 kg, they said.
Market sources said that the ginners were under pressure because unsold stock is piling up with them due to mills' attitudes toward purchasing. Cotton analyst, Naseem Usman said that more or less two weeks ago, rates hitting the season's high, so the mills made several deals to import lint cotton at the cheaper prices. The government may withdraw duty and taxes on import of cotton from other countries, this factor is also propelling mills to adopt wait-and-see behaviour, experts said.
Adds Reuters: ICE cotton futures crawled higher on Wednesday ahead of a weekly export sales report from the US government on expectations of encouraging data. Cotton contracts for March settled up 0.19 cent, or 0.28 percent, at 68.84 cents per lb. It traded within a range of 68.62 and 68.9 cents a lb. Total futures market volume fell by 12,317 to 31,806 lots. Data showed total open interest fell 2,191 to 226,636 contracts in the previous session.
The following deals were reported to have changed hands on the ready counter: 400 bales of cotton from Sanghar at Rs 6050, 1000 bales from Tando Adam at Rs 6050/6100, 400 bales from Daulatpur at Rs 6200, 800 bales from Dherki at Rs 6650, 600 bales from Ghotki at Rs 6650, 1600 bales from Saleh Pat at Rs 6450/6600, 2000 bales from Khairpur at Rs 6375/6400, 1000 bales from Liaquatpur at Rs 6700, 800 bales from Rahim Yar Khan, 400 bales from Jalalpur, 400 bales from Shujabad, 400 bales from Chani Goth, 200 bales from Ahmedpur East all sold at the same prices, 1200 bales from Taunsa at Rs 6500/6550, 200 bales from Shehar Sultan at Rs 6550, 200 bales from Alipur at Rs 6550, 200 bales from Marrot at Rs 6450, 400 bales from Fort Abbas at Rs 6450, 400 bales from Mianwali at Rs 6350 and 200 bales from Burewala at Rs 6300, 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 15.11.2017
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37.324 kg 6,400 145 6,545 6,545 NIL
Equivalent
40 kgs 6,859 155 7,014 7,014 NIL
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