Continued rains in country pushed up prices and may cause damage to standing cotton crop dealers said amid post-holiday session on the cotton market on Monday. The Karachi Cotton Association (KCA) official spot rate was unchanged at Rs 6000, they said. The prices of seedcotton in Sindh were at Rs 2300-2500 and rates in Punjab were at Rs 2300-2650, they said. In ready dealings nearly 1600 bales of cotton changed hands between Rs 6,200-6300, they added.
Commenting on the present rise in the rates, Naseem Usman said that persisting rains in cotton belt caused a net rise of Rs 400-600 in the rates of fine cotton. In the meantime, seedcotton prices showed no increase due to quality factor, he said. In fact, at a time, rains are affecting quality of standing crop and also causing rise in the rates, other brokers said.
Heavy rains not only causing damage of cotton crop, other crops are also hit hard, they said. It is likely that some 1.2-1.5 million bales may be damaged during the recent monsoon rains. They said that projections for the achievement of bumper cotton crop this year may be difficult because of rains next month is suitable for the revision of cotton target. Naseem Usman said that till September 1, about 1.4 million bales of cotton had reached the ginneries. The following deals were reported: some 1200 bales of cotton from Shahdadpur and Tando Adam sold at Rs 6200-6300 and 400 bales from Mian Chunuun at Rs 6,300.
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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 30.08.2011
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37.324 Kgs 6,000 120 6,130 6,130 NIL
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Equivalent
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40 Kgs 6,430 120 6,560 6,560 NIL
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