Seedcotton rates dip despite monsoon rains in cotton growing areas

Rates came down sharply on the cotton market on Thursday despite the monsoon rains in the cotton growing areas, dealers said. The Karachi Cotton Association (KCA) official spot rate was left unchanged at Rs 8,650, they said. Seedcotton prices continued to fall, in Sindh shedding Rd 300 to Rs 3300-3400 and in Punjab prices also came down by Rs 400-600 to Rs 3100-3300, they said. In ready business, nearly 1200 bales of cotton changed hands at Rs 8450-8700, they said.
Commenting on the present situation after monsoon rains in some parts of the country, analysts said that prices of cotton instead of going up after the recent rains, the rates of old and new both crops are coming down. They also said that the ginners were expecting fresh rise in the rates after disruption in phutti arrival owing to rains. Trading activity was slow as mills kept to the sidelines in expectation of further decline in the prices, they said.
On Wednesday the US cotton futures closed lower, in another light-volume session, before release of a key government plantings report due early Thursday, brokers said. Benchmark December cotton on ICE Futures US fell 0.61 cent to finish at $1.2140 per lb, moving from $1.1981 to $1.2466.
Total market volumes remained depressed, with 10,372 lots traded late in New York, about half of the 30-day norm, Thomson Reuters preliminary data showed. The following deals were reported: 200 bales of cotton from Mailsi sold at Rs 8500, same figure from Rahim Yar Khan at Rs 8500, equal number from Khanewal at Rs 8600, same number from Shahdad Pur at Rs 8450, same number from Haroonabad at Rs 8600 and 200 more bales from Burewala at Rs 8700, they said.

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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 29.06.2011

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37.324 Kgs       8,650       120       8,770        8,770               NIL

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Equivalent

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40 Kgs           9,270       120       9,390        9,390               NIL

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