Purchasing by mills and exporters helped the rates to resist further erosion on the cotton market on Monday, dealers said. The Karachi Cotton Association (KCA) official spot rate was unchanged at Rs 5,300, they said.
Prices of seedcotton of low quality in Sindh was down by Rs 100 t0 Rs 1700 and best type maintained the weekend level at Rs 2300 and in Punjab also, inferior type followed the same trend, shedding Rs 200 to Rs 1800 and good quality did not show any change at Rs 2500, they said.
In ready dealings approximately 15,000 bales of cotton changed hands at Rs 4,700-5,300, they added. According to the market sources business volume was comparatively low as growers did not show their rising interest in the selling because they were not getting better returns against the cost of production.
Sharing the same view, cotton analyst Naseem Usman said that the ginners and growers were hoping for the profits not loss in the returns. This strategy is emerging with positive gains because low quality of cotton is improving and selling at some reasonable rates but the mills and spinners were trying to grab all lots of fine type at their psychological level, he added. Other experts said that some growers and ginners were very active in selling the seeds cotton due to expectations for good cotton production in the current season.
The following deals were reported: 1000 bales of cotton from Khair Pur sold at Rs 4700, 2000 bales of cotton from Upper Sindh at Rs 5150-5200, 1000 bales of cotton from Hasil Pur at Rs 5000, 2000 bales of cotton from Haroonabad at Rs 5000-5050, 1000 bales of cotton from Faqir Wali at Rs 5000-5050, 1000 bales of cotton from Garh Marahraja at Rs 5000/5100, 600 bales of cotton from Bahawal Nagar at Rs 5050, 400 bales of cotton from Yazman Mandi at Rs 5150, 1000 bales of cotton from Rahim Yar Khan at Rs 5300, 1000 bales of cotton from Sadiqabad at Rs 5300, 2000 bales of cotton from Khanewal at Rs 5200/5300, 2000 bales of cotton from Rajan Pur at Rs 5400.
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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 10.12.2011
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37.324 Kgs 5,300 130 5,430 5,430 NIL
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Equivalent
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40 Kgs 5,680 130 5,810 5,810 NIL
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