Home »Cotton and Textiles » Pakistan » Cotton prices steady on modest trade activity
Modest activity was witnessed on the cotton market on Wednesday as some needy spinners covered their short position during the session, dealers said. The official spot rate was up by Rs 100 to Rs 6800, they said. In the ready session, over 1000 bales of cotton changed hands between Rs 6800 and Rs 6990, they said.

According to the market sources, the spinners and mills generated some activity in the process of trading. Cotton analyst, Naseem Usman said that the cotton market likely to stay some sluggish in the near future. He believes that a delay in new arrivals of next crop and shortage of fine cotton may cause price firmness in days to come.

Adds Reuters: ICE cotton futures fell about 4 cents on Tuesday, halting three straight sessions of gains, on a technical sell-off and speculator liquidation after cotton hit near three-year highs on Monday. "The market was technically overbought and it was due to come down now," said Louis Rose, co-founder and director of research and analytics at Rose Commodity Group.

The first month July cotton contract on ICE Futures U.S. closed limit down, or 4 cents lower at 81.32 cents per lb. The contract registered an intra-day decline of 4.69 percent, the sharpest since July 7, 2014, and traded within a range of 81.32 cents and 85.18 cents a lb. The following deals reported: some 200 bales of cotton from Bhakar sold at Rs 6800, 400 bales from Khanewal at Rs 6825/6850 and 400 bales from Khanpur at Rs 6990, 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 16-05-2017

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37.324 kg 6,800 135 6,935 6,835 + 100/-

Equivalent

40 kgs 7,288 145 7,433 7,325 + 108/-

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