Volume of business failed to pick up on the cotton market on Thursday amid short supply of lint cotton, dealers said. The official spot rate was unchanged at Rs 7800, they said. In ready session, around 13,000 bales of cotton changed hands between Rs 6600-8000, they said. In Sindh, cotton prices were at Rs 2900-3600, and in Punjab rates were at Rs 2900-3650, as per 40 kg, they said.

Commenting on the thin business activity, some dealers said that supply was tight, besides, the ginners, who have limited stock of fine quality were trying to keep on the sidelines. But some experts observed that since Indian cotton prices started showing soft trend, rates were almost unchanged in the local markets or not going up sharply against the last sessions.

In the meantime, Heim textil fair in Frankfurt, starting from 9 December may be achieve better outcome against the last year. They expect Pakistani exporters to get better response in the exhibition. Cotton analyst, Naseem Usman also shared these views, saying that dollar's surge against the rupee is influencing the idea about positive outcome from the international exhibition in Frankfurt.

Adds Reuters: ICE cotton futures rose on Wednesday to snap a three-day losing streak, amid high demand for the natural fibre crop. The most active ICE cotton contract for March expiry settled up 0.61 cent, or 0.79 percent, at 78.11 cents per lb. It traded within a range of 77.37 and 78.29 cents a lb.

Cotton futures marked a 3-1/2-year high of 79.45 cents a lb. last week. Total futures market volume fell by 8,023 to 22,702 lots. Data showed total open interest gained 312 to 283,001 contracts in the previous session.

The following deals reported: 600 bales of cotton from Ghotki at Rs 8000, 400 bales from Panu Akil at Rs 8000, 400 bales from Saleh Pat at Rs 8000, 2600 bales from R Y K at Rs 8000, 1000 bales from M. P. Dewan at Rs 8000, 5200 bales from Haroonabad at Rs 7200/7700, 600 bales from Shujabad at Rs 7125, 600 bales from Bahawalpur at Rs 7000, 200 bales from Multan at Rs 6900, 400 bales from Burewala at Rs 6700, 600 bales from Faqeerwali at Rs 6600, 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 03.01.2018

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37.324 kg         7,800       145         7,945        7,945            NIL

Equivalent

40 kgs            8,359       155         8,514        8,514            NIL

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Copyright Business Recorder, 2018