Trading activity came down on the cotton market on Friday as traders were facing transportation problem ahead of Eid-ul-Fitr, dealers said. The Karachi Cotton Association (KCA) official spot rate was unchanged at Rs 6000, they said. The prices of seedcotton in Sindh were unchanged at Rs 2500-2600 and rates in Punjab also retained the overnight level at Rs 2200-2800, they said. Nearly 8,000 bales of cotton changed hands between Rs 5,800-6000, dealers said.
Market sources said that activity was slow as mills and spinners were on the sidelines owing to transportation problem ahead of Ei-ul-fitr holidays. Naseem Usman said that mills and spinners were not able to make fresh deals ahead of holidays. Some brokers sharing the same views said that mills are expecting that prices may fall as a result of good production this year.
Some analysts said that ginners ended strike and it is expected that normal trading activity may resume after Eid holidays. On Thursday the US cotton futures settled lower on investor sales as the market fell for the third day in a row and analysts said the weak tone could lead to further losses.
The key December cotton contract on ICE Futures US fell two cents to close at $1.0299 per lb, moving from $1.0174 to $1.0639. Total volume traded hit over 15,200 lots, almost 15 percent above the 30-day norm, Reuters data said. Total volume traded on Wednesday hit 15,308 lots, more than double the Tuesday level of 6,410 lots, which is the lowest level since June 25, 2010, ICE Futures US data showed.
The following deals were reported: 1000 bales of cotton from Jhole sold at Rs 5850, 1000 bales of cotton from Shahdad Pur at Rs 5800, 600 bales of cotton from Tando Adam at Rs 5800, 600 bales of cotton from Sanghar at Rs 5800, 400 bales of cotton from Mir Pur Khas at Rs 5800, 200 bales of cotton from Hyderabad at Rs 5800, 400 bales of cotton from Chichawatni at Rs 5800-6000, 400 bales of cotton from Mian Chunnun at Rs 5800-5900, 600 bales of cotton from Khanewal at Rs 5900, 400 bales of cotton from Hasil Pur at Rs 5800-5900, 200 bales of cotton from Vehari at Rs 5800, 400 bales of cotton from Chistian at Rs 5800-5900, 200 bales of cotton from Kabirwala at Rs 5900, 200 bales of cotton from Haroonabad at Rs 5850 and 400 bales of cotton from Multan at Rs 5900.
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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 25.08.2011
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37.324 Kgs 6,000 130 6,130 6,130 NIL
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Equivalent
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40 Kgs 6,430 130 6,560 6,560 NIL
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