A solo deal was reported on the cotton market on Thursday in the process of trading, dealers said. The official spot rate was unchanged at Rs 6700, they said. In ready session, 1000 bales of cotton sold at Rs 7000, they said. According to the market sources, trade activity remained slow as mills and spinners were conspicuous by their absence. They said that several mills and spinners have started selling cotton from their stocks instead of converting it into yen. A huge stock of unsold yarn is a serious problem for the cotton traders, they observed.

Cotton analyst, Naseem Usman said that apart from other problems, political and economic uncertainty in the country also depressed business activity. He said in the absence of proper attention of the government, textile exporters have also thinking to close down their business and mulling to invest in profitable business.

Adds Reuters: ICE cotton futures snapped three-days of gains to fall on Wednesday on expectations of favourable weather conditions for planting of the natural fiber crop in most of the top producing regions. The July cotton contract on ICE Futures US touched a one-week high at 79.44 cents before settling down 0.76 percent, at 78.77 cents per lb. Total futures market volume fell by 2,791 to 14,849 lots. Data showed total open interest gained 2,880 to 260,058 contracts in the previous session. Only one deal of 1000 bales of cotton from Bahawalpur was reported 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    Expenses    Ex-Karachi  Ex. KHI, As   Ex-Karachi

                                                  on 03-05-2017   in Rupees

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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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Copyright Business Recorder, 2017