Trade activity picked up slightly on the cotton market on Saturday in the process of trading, dealers said. The official spot rate was unchanged at Rs 6700, they said. In ready session, 3600 bales of cotton changed hands between Rs 5950-7000, they said. According to the market sources, some spinners and mills took interest in fresh buying to cover their position.

Other experts said that big stock of unsold yarn which causing financial losses and making them not able to meet their expenditures, particularly utility and gas bills. Cotton analyst, Naseem Usman said that textile industry has started diverting their money in to real estate and capital market to keep themselves away from future losses.

Experts said that how the country would be able to achieve cotton target? The government is not providing basic facilities to the growers, they said. Besides, Daily Market Report (DMR) could not be issued because fire broken out at second floor of the Karachi Cotton Association (KCA) building, he added.

Adds Reuters: ICE cotton futures shed over 1 percent on Friday due to favourable weather conditions in major producing areas and fund-selling, posting a second straight weekly decline. The July cotton contract on ICE Futures US settled down 1.44 percent at 77.77 cents per lb on Friday and was down 1.4 percent for the week. The July cotton contract on ICE Futures US settled down 1.14 cents, or 1.44 percent, at 77.77 cents per lb. It traded within a range of 77.71 and 79.02 cents a lb. Total futures market volume rose by 6,974 to 21,090 lots. Data showed total open interest gained 1,456 to 263,028 contracts in the previous session. Following deals were reported: 3400 bales of cotton from Rahim Yar Khan and 200 bales of cotton from Bahawalpur at Rs 5950-7000, 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 24-03-2017   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