Prices firmed on the back of persistent demand by leading buyers, dealers said on the cotton market on Monday. The official spot rate was inert at Rs 6100, they said. In the ready session, over 20,000 bales of cotton changed hands between Rs 5900-6300, they said. In Sindh seed cotton prices were unchanged at Rs 2800-3000 and in the Punjab, rates were stable at Rs 2800-3100, as per 40 kg, they said. According to the market sources, strong demand by mills and spinners helped the rates to move on upside.

Cotton analyst, Naseem Usman said needy mills indulged in panic buying in view of declining phutti arrivals. He said that the heat wave in Sindh and Punjab has slowed down phutti arrivals. Besides, according to the Pakistan Central Cotton Committee (PCCC), cotton related insects and viruses, such as Pink Bollwarm and Curl Leave Cotton Virus (CLCV) HAVE started affecting the standing crop, causing short fall at a time when the textile industry usually, begins to build up its inventories.

So the ginners, who have limited stock, were refraining from selling at current rates, whereas a few were trying to take opportunity of the situation and quoting higher rates. Other experts said that to get better cotton production, the PCCC recently, it it's meeting suggested the restructuring of cotton policy by taking all the stakeholders on board. Additionally, Rs 690 million approved for the Committee for 2017-18, they said.

The following deals reported:, 1000 bales from Tando Adam at Rs 5950/6000, 2000 bales from Shahdadpur at Rs 5900/6050, 400 bales from Mirpurkhas at Rs 5925, 2000 bales from Nawabshah at Rs 6125/6150, 400 bales from Sakrand at Rs 6150, 5000 bales from Khairpur at Rs 6200, 2000 bales from Rohri at Rs 6200, 1600 bales from Salehpat at Rs 6200, 400 bales from Rahim Yar Khan at Rs 6250, 600 bales from Khanewal at Rs 6300, 400 bales from Khanpur at Rs 6300, 400 bales from Chichawatni at Rs 6300, 400 bales from Rajanpur at Rs 6275/6300, 800 bales from Jalalpur at Rs 6250/6300, 600 bales from Pir Mehal at Rs 6250/6275, 400 bales from Alipur at Rs 6250, 200 bales from Bhakar at Rs 6250, 400 bales from Vehari at Rs 6250/6275, 600 bales from Mianchano at Rs 6250, 400 bales from Bahawalpur at Rs 6250-6250, 200 bales from Kachiwala at Rs 6250, 1000 bales from Layyah at Rs 6200/6250, 2000 bales from Mianwali at Rs 6200/6250, 800 bales from Burewala at Rs 6225, 1400 bales from Fort Abbas at Rs 6200, 1200 bales from Dera Ghazi Khan at Rs 6200 and 800 bales from Bahawal Nagar at Rs 6200, dealers 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 23.09.2017

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37.324 kg         6,100       145         6,245        6,245            NIL

Equivalent

40 kgs            6,537       155         6,692        6,692            NIL

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Copyright Business Recorder, 2017