Lint buying restricted to urgent needs, curiosity rising about rates next week

Firmness prevailed on the cotton market on Saturday as both buyers and sellers were expecting prices to hit new record in the coming days, dealers said. Karachi Cotton Association (KCA) official spot rate was unchanged at Rs 11,500, they said. Phutti prices in Sindh and Punjab were unchanged at Rs 4500-5500, they said.
In the ready business about 8,000 bales of cotton changed hands between Rs 12,000-13,000, they added. Activity was down in process of trading, dealers said as mills showed interest in buying just to meet the urgent needs, they said. Explaining the thin business and continued rate rise, some analysts said that reports about the ban by India caused rising worries around the world.
They said that present trend in the global market signalling that the 200-cent mark now may not be that far. In the meantime, mills said that negative impact of the higher lint prices would continue to hurt the textile sector in the coming days because there is no hope of fall in the rates, they added.
On Friday the US cotton futures jumped to an all-time record at 1.94 dollars per lb on trade and speculative buying as tight supplies are seen pushing the market past the $2 level next week, dealers said. The benchmark March cotton contract roared up to 1.94 dollars at 9:22 am EST (1422 GMT) before falling on profit-taking to trade at $1.9246, up 4.88 cents on the day.
The following deals were reported: 2000 bales of cotton from Upper Sindh sold at Rs 13000, 800 bales of cotton from Mianwali at Rs 12000, 800 bales of cotton from Bahawal Pur at Rs 12000, 400 bales of cotton from Burewala at Rs 12200, 1000 bales of cotton from Lodhran at Rs 12200, 200 bales of cotton from Rajan Pur at Rs 12500, 400 bales of cotton from Ali Pur at Rs 12700, 600 bales of cotton from Khanewal at Rs 13000 (Credit) and 1000 bales of cotton from Khan Pur at Rs 13000 (Credit).

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The KCA Official Spot Rate for Local Dealings in Pak 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 11.02.2011

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37.324 Kgs      11,500       120      11,620       11,620               NIL

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Equivalent

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40 Kgs          12,325       120      12,445       12,445               NIL

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