Upward trend was witnessed on the cotton market on Thursday as mills and exporters made hectic buying to meet immediate needs, dealers said. The official spot rate was inert at Rs 5,500, they said. Prices of seedcotton in Sindh were at Rs 1800-2200 and in the Punjab at Rs 2200-2600, they said.
In ready dealings about 21,000 bales of cotton changed hands at Rs 4,300-5750, they added. Market sources said that higher trend in the NY cotton market, propelled the mills and spinners to make hectic buying of cotton. It is surprising to note that despite the rising trend in the phutti arrivals, the rates were going up or stabilising, they said. They also said that local traders are busy in fresh buying on expectations of increase in demand by consumers or importing countries. China is covering the long-position because it has decided to cut cotton production after recent sharp fall in prices.
According to the Reuters the NY cotton futures settled lower due to modest profit-taking following the previous session's two-month high, and the market could consolidate here for now, analysts said.
Benchmark March cotton futures fell 0.66 cent to end at 97.53 cents per lb, moving from 95.80 to 98.16 cents. Trade remained within the previous session's range of 95.67 to 99.47 cents. Volume on Wednesday jumped to almost 20,000 lots, more than 40 percent above the 30-day norm, according to preliminary Thomson Reuters data.
The following deals were reported: 400 bales of cotton from Tando Adam sold at Rs 4300, 400 bales of cotton from Mir Pur Khas at Rs 4375, 400 bales of cotton from Saleh Pat at Rs 5575, 2000 bales of cotton from Haroonabad at Rs 5200/5300, 400 bales of cotton from Faqir Wali at Rs 5300, 200 bales of cotton from Mamo Kanjan at Rs 5300, 200 bales of cotton from Gojra at Rs 5300, 400 bales of cotton from Fort Abbas at Rs 5400, 400 bales of cotton from Hasil Pur at Rs 5400, 400 bales of cotton from Dunia Pur at Rs 5500, 400 bales of cotton from Mian Chano at Rs 5550, 1200 bales of cotton from Vehari at Rs 5550/5650, 400 bales of cotton from Liaquat Pur at Rs 5600, 400 bales of cotton from Kabir Wala at Rs 5600, 600 bales of cotton from Dera Ghazi Khan at Rs 5600, 600 bales of cotton from Khanewal at Rs 5600, 600 bales of cotton from Mian Wali at Rs 5600, 600 bales of cotton from Bahawal Pur at Rs 5600, 1000 bales of cotton from Lodhran at Rs 5600, 400 bales of cotton from Makhdoom Pur at Rs 5600, 600 bales of cotton from RahimYar Khan at Rs 5600, 600 bales of cotton from Jan Pur at Rs 5600, 2200 bales of cotton from Ahmed Pur at Rs 5600/5700, 800 bales of cotton from Shadan Lund at Rs 5650, 3000 bales of cotton from Rajan Pur at Rs 5650, 1000 bales of cotton from Sadiqabad at Rs 5700, 600 bales of cotton from Khan Pur at Rs 5700, 400 bales of cotton from Burewala at Rs 5700 and 400 bales of cotton from Rinala Khurd at Rs 5750.
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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 18.01.2012
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37.324 Kgs 5,500 130 5,630 5,630 NIL
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Equivalent
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40 Kgs 5,894 130 6,024 6,024 NIL
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