Prices remain stable in slow trade on cotton market

Thin business was seen on cotton market on Tuesday as mills showed interest in buying of fine quality to tackle the world competition, dealers said. The Karachi Cotton Association (KCA) official spot rate was unchanged at Rs 8,500, they said. In Sindh and Punjab phutty price of low type was at Rs 2500 and that of superior type at Rs 3000, they said.
In ready business over 2,000 bales of cotton changed hands between Rs 8000-8600, they added. There is dullness in the market as buyers are interested in the budget rather than doing business because they are hoping for some concessions and facilities, analysts said.
Other analysts said that thanks to the stable foreign demand for the textile items so it can be expected that exports of textile items will gain ground in the coming days. In the meantime, heap of cotton yarn is causing financial problem for the traders, better cotton production for the next season may ease pressure, faced by the cotton traders, they said.
Other major development is that the ginners are trying to sell all unsold stock to make space for the new crop as the mills are keen to buy good quality of cotton, they said. The following deals were reported: 600 bales of cotton (mill to mill) sold at Rs 8550, 100 bales from Multan at Rs 8350, 418 bales from Mian Channun at Rs 8500, 200 bales from Khan Pur at Rs 8600, 400 bales from Rahim Yar Khan at Rs 8400, 100 bales from Mongi Bangla at Rs 8000, 200 bales from Shujabad at Rs 8400 and 200 bales of cotton from Dahranwala at Rs 8100.

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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 30.05.2011

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37.324 Kgs       8,500       120       8,620        8,620               NIL

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Equivalent

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40 Kgs           9,109       120       9,229        9,229               NIL

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