After a short break official spot rate dropped modestly on the cotton market on Thursday in the process of slow trade activity, dealers said. The official spot rate was down by Rs 50 to Rs 6600, dealers said. In the ready session, a single deal of 600 bales of cotton from Khipro reported at Rs 5750, they said. The seed cotton prices in Sindh and Punjab were unchanged, they said.

Market sources said that against the last year, the mills and spinners not looking active to cover their immediate requirements ahead of Eid-ul-Fitr holidays. Commenting on the downward trend in the market, some experts said that both the government and the Trading Corporation of Pakistan (TCP) must come ahead to take measures to stabilise in the market. High costs of production making our stuff dearer, at the same time, local buyers were showing their interest in foreign cotton due to quality factor, they observed.

Reuters adds: ICE cotton futures dropped for a ninth straight session on Wednesday to more than eight-month lows, driven by investor liquidations as well as falling crude oil prices. Cotton contracts for December settled down 0.8 cent, or 1.16 percent, at 68.17 cents per lb. The contract traded within a range of 68.13 and 69.67 cents a lb.

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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 21.06.2017

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37.324 kg          6,600      135         6,735        6,785         - 50/-

Equivalent

40 kgs             7,073      145         7,218        7,272         - 54/-

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Copyright Business Recorder, 2017