Rates of cotton showed modest gains on the local market amid cautious selling by ginners after the Pakistan Cotton Ginners Association (PCGA) lower-than-expected report, dealers said. The official spot rate was higher by Rs 50 to Rs 6800, they said. In Punjab, prices of seed cotton were unchanged at Rs 3750-3800, as per 40 kg, they said. In ready session, a deal of 200 bales of cotton sold at 7100, because the ginners who have they said.

Cotton analyst, Naseem Usman said that the ginners showed no interest in fresh deals with spinners after release of the PCGA data, depicting less phutti arrival figures. He also said that rates were higher in the international market in the meantime, prices of polyester fibre came down from Rs 129 to Rs 127 due to slow demand. Furthermore, other experts said that in Sindh cotton growing areas, cotton sowing has started but in Punjab, sowing would start in middle of April. Besides, China sells 24,200 tonnes of cotton at auction of state reserves on Monday. Cotton sold at average price of 14,733 yuan ($2,133.98) per tonne. Sale represents 79.20 percent of total cotton made available at auction.

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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 18.03.2017

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37.324 kg         6,800       135         6,935        6,885         + 50/-

Equivalent

40 kgs            7,288       145         7,433        7,379         + 54/-

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Copyright Business Recorder, 2017