Prices remain on upward trend on the cotton market on Tuesday amid tight supply of fine quality, dealers said. The official spot rate unchanged at Rs 6000, they said. In the ready session, over 20,000 bales of cotton changed hands between Rs 6050-6275, they said. In Sindh, seed cotton prices were at Rs 2700-2900 and in Punjab, rates were at Rs 2600-2800 per 40 kg, they said.

Cotton analyst, Naseem Usman said that there were several factors, which caused sharp increase in the rates. One of the leading factors is fresh rains in Sindh, creating short supply, besides, virus attack in the Punjab cotton belt, creating uncertainties among mills and spinners. Recently time and again the agriculture dept is advising growers and farmers to carry out spray to save standing crop, other experts said.

The freight costs for the haulage of cotton have also increased due to transportation of sacrificial arrivals from rural areas to urban areas. Reuters adds: ICE cotton gained on Monday for a third straight session as investors covered their short positions after heavy rains in US growing regions hurt output.

Cotton contracts for December settled up 0.28 cent, or 0.42 percent, at 67.56 cents per lb., trading within a range of 67.17 and 67.8 cents a lb. Total futures market volume fell by 4,864 to 10,891 lots. Data showed total open interest gained 2,723 to 224,330 contracts in the previous session.

The following deals reported: 2000 bales from Sanghar at Rs 6050/6100, 400 bales from Samundri at Rs 6250, 2000 bales from Shahdadpur at Rs 6050/6100, 800 bales from Burewala at Rs 6200/6275, 800 bales from Mirpurkhas at Rs 6050, 600 bales from Chichawatni at Rs 6200, 2000 bales from Hyderabad at Rs 6100, 600 bales from Mian Chano at Rs 6200, 1600 bales from Kotri at Rs 6050/6100, 800 bales from Chistian at Rs 6200, 2000 bales from Tando Adam at Rs 6100, 1200 bales from Haroonabad at Rs 6185/6200, 400 bales from Moro at Rs 6050, 400 bales from Lodhran at Rs 6200, 600 bales from Sultanabad at Rs 6050, 1000 bales from Vehari at Rs 6200/6250, 400 bales from Shahpur Chakar at Rs 6050, 600 bales from Sahiwal at Rs 6200, 400 bales from Pak Pattan at Rs 6200, 400 bales from Arifwala at Rs 6200 and 1200 bales from Khanewal at Rs 6200/6275, 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 21.08.2017

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37.324 kg          6,000      145         6,145        6,145            NIL

Equivalent

40 kgs             6,430      155         6,585        6,585            NIL

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Copyright Business Recorder, 2017