Commenting on sharp decline in trading activity, cotton analyst, Naseem Usman said that the ginners, who sold enough stocks, were trying to stay away from fresh selling. In the meantime, some of them took interest in selling at the present rates, other brokers said. They also said that the rate of the haulage of seed cotton have increased because of transportation of sacrificial animals from rural areas to urban dwelling. They also said that prices may not fluctuate sharply in the near future instead the rates may stay after Eid-ul-Azha holidays.
Reuters adds: ICE cotton gained on Friday, edging away from one-month lows hit in the previous session as the US dollar strengthened, however, the natural fibre was on track for its second straight weekly decline on worries over higher US production.
Cotton prices are not done falling yet. Cotton contracts for December settled up 0.37 cent, or 0.6 percent, at 67.28 cents per lb. It traded within a range of 66.68 and 67.5 cents a lb. In the previous session, prices touched their lowest since July 17 at 66.64 cents a lb.
The following deals reported: 1600 bales of cotton from Tando Adam at Rs 5800/5950, 2400 bales from Shahdadpur at Rs 5900/5950, 1000 bales from Mirpurkhas, 800 bales from Kotri all were sold at the same rates, 600 bales from Khadro at Rs 5950, 1600 bales from Hyderabad, 1000 bales from Sanghar, 400 bales from Shahpur Chakar all were done at the same prices, 600 bales from Mianchano, 600 bales from Bakhar, 1000 bales from Haroonabad, 400 bales from Bahawal Nagar, 400 bales from Pak Pattan, 400 bales from Hasilpur, 600 bales from Chichawatni, 200 bales from Tonsa Sharif, 800 bales from Sahiwal, 400 bales from Mailsi, 800 bales from Khanewal, 400 bales from Kassowal, 600 bales from Duniyapur, 800 bales from Burewala all were finalised at Rs 6050 and 400 bales from Multan at Rs 6075, 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 18.08.2017
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37.324 kg 5,950 145 6,095 6,095 NIL
Equivalent
40 kgs 6,377 155 6,532 7,532 NIL
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Copyright Business Recorder, 2017