RECORDER REPORT

KARACHI: A lean business was seen on the cotton market on Tuesday as leading participants kept on the sidelines in the process of trading, dealers said.

The official spot rate was unchanged at Rs 5,500, dealers said. In Sindh, prices of seed cotton rose by Rs 100 to Rs 3100 and Rs 3300, per 40 kg, they said. In the Punjab, seed cotton prices were up by Rs 100 to Rs 3000 and Rs 3350, they said.

In ready session, only one deal of 200 bales of cotton from Khanpur finalised at Rs 5600, they said.

Influenced by the global track, prices showed softness as most of the buyers preferred to be sidelines to observe the latest development, dealers said.

They said that the situation is in reserve gear since Indian importers showed interest in purchasing of Pak cotton.

Sharing the same opinion, cotton analyst, Naseem Usman said that some time back, local cotton millers were busy in purchasing of cotton from India to meet requirements.

In the meantime, exporters have become active to deal with the new situation, he added.

It is very surprising to note that most of the cotton producing countries facing shortage of production this year, causing increase in rates, he added.

Reuters adds: ICE cotton futures remained broadly unchanged on Monday, after touching over eight month high the previous session, as a tumbling dollar and speculative buying offset favourable weather conditions in the US and top producer India.

There was some buying from Chinese speculators, said Rogers Varner, president of Varner Brokerage in Cleveland, Mississippi. The weather in the US, however, continues to be favourable for the new crop, he added.

Indian monsoon rains have covered nearly half of the country, the weather department said on Monday, accelerating planting of summer crops like paddy rice, soybeans, cotton and pulses.

The December cotton contract on ICE Futures US settled up 0.07 cent, or 0.11 percent, at 65.99 cents per lb. It traded in a range of 65.39 to 66.63 cents a lb.

CAKE FUTURES

The July vaida was higher on the forward cottonseeds oilcake market on Monday in the process of trading, dealers said.

The July vaida settled at Rs 2050.10 on Saturday and it commenced with 50 paisas rise at Rs 2050.60 in wee hours, they added.



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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 1-1/32"

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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 20-06-2016

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37.324 kg 5,500 135 5,635 5,635 NIL

Equivalent

40 kgs 5,894 145 6,039 6,039 NIL

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