RECORDER REPORT

KARACHI: Seed cotton prices drifted lower on the cotton market on Friday in the process of slow trading, dealers said.

The official spot rate was unchanged at Rs 7,500, they added. In ready session, over 4000 bales of cotton changed hands between Rs 6500-7535, they said. In both Sindh and the Punjab, seed cotton prices were down by Rs 200 to Rs 2700 and Rs 3300, they said.

Some experts said that market is still under influences of issuance of Statutory Release Orders (SRO), waiving duty and taxes on the cotton import.

Whereas custom authority denied receiving the recently issued SRO, they said.

Cotton yarn continued to decline, they said adding that stock of unsold seed cotton diminishing with the passage of time.

According to reports, the State Bank of Pakistan (SBP) on Friday raised its policy rate by 25 basis points to 6 percent to pre-empt overheating of the economy and inflation breaching its target rate.

How the currency market would react to the raise by the SBP, it has to be observed for some times, they said.

Cotton Analyst, Naseem Usman said that in fact volume of business is not picking up due to lack of market moving factors.

In the New York, cotton futures were higher on Thursday.

The following deals reported: 1600 bales of cotton from Rohri at Rs 7000, 1600 bales from Rahim Yar Khan at Rs 7535, 600 bales from Khanewal at Rs 7250, 400 bales from Liaquatpur at Rs 7200 and 400 bales from Faqirwali at Rs 6500, 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 25-01-2018


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37.324 kg         7,500         145         7,645         7,645         NIL


Equivalent


40 kgs            8,038         155         8,193         8,193         NIL


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