RECORDER REPORT

KARACHI: Rates moved sharply higher on the cotton market on Thursday amid rising fears about the short crop, dealers said.

The official spot rate picked up by Rs 150 to Rs 6200, dealers said. In Sindh, seed cotton prices were at Rs 2800-3250 and in Punjab rates of Phutti were at Rs 2900-3250, as per 40 kg, they said.

In ready business, over 28,000 bales of cotton changed hands between Rs 6050 and Rs 6500, they said.

Market sources said it looks that rates of cotton were moving in line with the global track, mainly because of hovering fears of short supply from cotton growing countries.

In fact, reports of apprehensions of likely damages to crop in the United States and lower-than-expected production in other cotton belts causing panic buying of cotton, other experts said.

Besides, speculations that India has deferred cotton exports until its crop size is finalised, they said.

Cotton analyst, Naseem Usman said that most of the world cotton markets moved higher mainly because of short supply and local market is also adopting the same path.

Besides, reports appeared that China will grow more cotton than originally expected after favourable weather over the summer, according to an industry survey carried out as farmers prepare to harvest the 2016/17 crop.

Adds Reuters: Cotton futures surged more than 1 percent on Wednesday to the highest in nearly six weeks, on concerns that rain may be hurting the crop in United States.

The following deals were reported: 200 bales of cotton from Kotri sold at Rs 6050/6100, 1000 bales from Hyderabad at Rs 6050/6100, 2600 bales from Shahdadpur at Rs 6050/6150, 2000 bales from Sanghar at Rs 6050/6150, 2000 bales from Tando Adam at Rs 6050/6150, 800 bales from Shahpur Chakar at Rs 6100/6150, 1600 bales from Nawabshah at Rs 6150/6250, 400 bales from Moro at Rs 6200, 2000 bales from Rohri at Rs 6200/6300, 3000 bales from Khairpur at Rs 6250/6300, 1200 bales from Salehpat at Rs 6300, 200 bales from Rahim Yar Khan at Rs 6300, 800 bales from Khanewal at Rs 6300/6400, 1600 bales from Haroonabad at Rs 6350/6400, 1400 bales from Burewala at Rs 6350/6400, 1600 bales from Vehari at Rs 6350/6450, 1200 bales from Chichawatni at Rs 6350/6450, 200 bales from Hasilpur at Rs 6400, 200 bales from Kassowal at Rs 6400, 200 bales from Multan at Rs 6400, 200 bales from Bahawal Nagar at Rs 6400, 400 bales from Kabirwala at Rs 6400, 600 bales from Rajanpur at Rs 6400/6425, 200 bales from Mianwali at Rs 6410, 400 bales from Mian Chano at Rs 6400/6500, dealers 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 1-1/32"

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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 21-09-2016

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37.324 kg 6,200 135 6,335 6,185 + 150

Equivalent

40 kgs 6,645 145 6,790 6,629 + 161

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