Prices fell on the cotton market on Monday in process of slow trading activity, dealers said. The official spot rate, after touching season's new high, started shedding ground, they said. The official spot rate was down by Rs 100 to Rs 7,700, they added. In ready session, over 3,000 bales of cotton changed hands between Rs 6400-7500, they said. In Sindh, seed cotton prices were at Rs 2900-3500, and in Punjab rates were at Rs 2900-3600, as per 40 kg, they said.

According to market sources last Friday, the ECC approved a waiver of sales tax and customs duty on the import of cotton. Since then the mills refraining from new deals, instead of trying to lay hands over the Indian cotton due to quality and price factors. In the meantime, cotton analyst, Naseem Usman said that during the last sessions, the ginners were raising asking prices to gain maximum profit but now the mills were not showing interest in fresh purchasing. As a whole, it looks that prices may not fall sharply in the coming days.

He also attributed the slow business to thin attendances of participants. Many are participating in the upcoming Heimtextil being held from January 9-12 in Frankfurt and it is most likely that a large number of Pak exporters to participate. The following deals reported: 400 bales of cotton from Khanewal at Rs 7500, 600 bales from Alipur at Rs 7425, 400 bales from Ghazi Ghat at Rs 7200, 600 bales from Haroonabad at Rs 6800, 200 bales from Maroot at Rs 6875 and 800 bales from Mianwali at Rs 6400, 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 06.01.2018

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37.324 kg         7,700       145         7,845        7,945        - 100/-

Equivalent

40 kgs            8,252       155         8,407        8,514        - 107/-

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Copyright Business Recorder, 2018