Cotton market: prices fall on modest buying by mills

 

Cotton market: prices fall on modest buying by mills

A sharp increase in prices, propelled mills to keep on the sidelines on the cotton market on Tuesday, dealers said. The official spot rate was unchanged at Rs 6,800, dealers said. In Sindh, seed cotton prices were at Rs 3250 and Rs 3450 and in Punjab rates were at Rs 3300-3450, as per 40 kg, respectively, they said. In ready business, trading activity came down as some 8000 bales of cotton changed hands between Rs 6900 and Rs 7100, they said. According to the market sources, prices are in line with the international trace as mills and spinners kept on the sidelines due to higher prices.

During the last sessions, prices went up on the back of delay in Phutti arrivals in Punjab where no early sowing could be done this season and this factor is causing short supply position, they said. Cotton analyst, Naseem Usman said that some interruptions in supply of seed cotton, caused increase in prices but now situation has changed. Rainy water is receding, so it is expected that crop may not face any virus attack in the coming days, he added.

Reuters adds: cotton futures fell on Monday following three straight sessions of gains as expectations for improving weather weighed on prices ahead of the US Department of Agriculture’s weekly crop progress report after the market close. The following deals were reported: 1200 bales from Sanghar at Rs 6900-6950, 400 bales from Hyderabad at Rs 6950, 800 bales from Kotri at Rs 6950-7000, 1000 bales from Tando Adam at Rs 6950-7000, 1400 bales from Shahdadpur at Rs 6950-7000, 400 bales from Sahiwal at Rs 7000, 400 bales from Cichawatni at Rs 7050-7075, 200 bales from Hasilpur at Rs 7090, 200 bales from Alipur at Rs 7090, 300 bales from Samundri at Rs 7100 and 1200 bales from Khanewal at Rs 7100, 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 1-1/32"

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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 08-08-2016

===========================================================================

37.324 kg         6,800       135         6,935        6,935            NIL

Equivalent

40 kgs            7,288       145         7,433        7,433            NIL

===========================================================================

 

Copyright Business Recorder, 2016
 

Copyright Reuters, 2016
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