Spot rate down to Rs 7,800; bearish sentiment prevails on cotton market

Prices continued downward revision on the cotton market on Monday due to low buying interest and sellers were also shy of doing business on the falling rates, dealers said. The Karachi Cotton Association (KCA) official spot rate slide was extended, reducing by Rs 200 more to Rs 7,800, they said.
Seedcotton rates, however, were higher by Rs 200 in Sindh at Rs 3300-3400, prices in Punjab were up by Rs 300 to Rs 3100-3400, they said. In ready business, trading activity improved as nearly 2400 bales of cotton changed hands at Rs 7750-7900, they added. The buyers were active in covering the immediate needs in expectations of rise in the export orders, they said. According to the market sources, seedcotton prices were firm despite the rains in some parts of Punjab, Naseem Usman said that many industries have started operation and this factor brings stability in the prices in the coming day.
He also said that mills were busy in buying of new crop, paying higher rates and trying to avoid old crop due to higher rates. The following deals were reported: 800 bales of cotton from Sanghare sold at Rs 7750-7900, 400 bales from Golacchi at 7800, 200 bales from Shahdadpur at the same rate, 400 bales of cotton from Matiyari at Rs 7750-7800, 200 bales from Haroonabad at Rs 7900, same number from Pakpattan at the same rate and same figure from Burewala at Rs 7850.

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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 02.07.2011

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37.324 Kgs        7,800       120         7,920       8,120           - 200

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Equivalent

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40 Kgs            8,359       120         8,479       8,694           - 215

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