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  • May 3rd, 2017
  • Comments Off on Modest trade activity on cotton market
Modest trade activity was seen on the cotton market on Tuesday in the process of trading, dealers said. The official spot rate was unchanged at Rs 6700, they said. In ready session, 1800 bales of cotton changed hands between Rs 6400-7000, they said. Market sources said that most of the mills and spinners were on the sidelines owing to little interest in new deals.

Instead of providing basic facilities to the ginners and farmers, the government is taking back different packages, announced few months ago, they said. Cotton analyst, Naseem Usman said the textile sector was the major source of foreign exchange earning, but now, in the absence of encouraging developments, how it would be able to show any improvement. The world over, the cotton business is gaining momentum because of a lost of facilities, other brokers said.

According to reports, China sold 21,800 tonnes of cotton at auction of state reserves on Tuesday. Sale represents 72.68 percent of total cotton available at the auction. Cotton sold at average price of 15,053 yuan ($2,183.33) per tonne. Adds Reuters: ICE cotton futures edged up in thin trading on Monday, with traders availing the US Department of Agriculture's weekly crop progress report after market close.

The July cotton contract on ICE future US settled up 0.08 cent, or 0.1 percent at 78.95 cents per lb. The following deals reported: 1200 bales of cotton from Kotri at Rs 6400 and 600 bales from Khanpur at Rs 7000, 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 29-04-2017

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37.324 kg 6,700 135 6,835 6,835 Nil

Equivalent

40 kgs 7,180 145 7,325 7,325 Nil

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