The volume of business improved on the cotton market on Saturday amid short supply of fine quality, dealers said. The official spot rate was unchanged at Rs 6650, they said. In Sindh, seed cotton prices were at Rs 3300-3400, in Punjab prices were at Rs 3300-3700, as per 40 kg, they said. In the ready season, nearly 5000 bales of cotton changed hands between Rs 6850-6950, they added.

In fact, the leading mills and spinners avoided fresh deals, in the meantime, some needy buyers indulged in routine buying of cotton, which helped volume of business to depict a visible increase, they said. Some of leading buyers have already booked sizeable quantity of cotton from other sources, they observed. In fact, spinners and mills were facing financial problem due to unsold stock of cotton yarn and fabric, they said.

Sluggish business of cotton yarn and fabrics is causing an uncertainty among them, besides, the falling exports of textile goods has started having its toll over the entire textile industry, they noted. Reports showing that in India cotton prices have reached at Rs 43000 per kandy, in China prices also firm due to good demand. Additionally, the United States Department of Agriculture (USDA) weekly report issued recently, showing 65 percent increase in exports against the last week.

Subsequently, cotton analyst, Naseem Usman said that rates may sustain present levels in the coming days.New York cotton futures were sharply higher on Thursday. The following deals reported: 950 bales of cotton from Sanghar sold at Rs 6850 and 4000 bales from Rahim Yar Khan at Rs 6950, 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 1-1/16"

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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    Expenses    Ex-Karachi  Ex. KHI, As   Ex-Karachi

                                                  on 24-02-2017   in Rupees

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37.324 kg         6,650      135        6,785         6,785             NIL

Equivalent

40 kgs            7,127      145        7,272         7,272             NIL

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Copyright Business Recorder, 2017