Prices are still on upward march amid tight supplies on the cotton market on Saturday, dealers said. Official spot rate extended its overnight gains, picking up Rs 50 more to Rs 5700, thus it rose by Rs 200 during the week, indicating prices may maintain its pace next week, they added.
Prices of seedcotton in Sindh were at Rs 2000-2300 and in the Punjab at Rs 2100-2750, they said. As a result of increase in asking prices by the ginners, business volume came down, nearly 2500 bales of cotton changed hands between Rs 5200-6200, they added. Commenting on the bullish sentiment, market sources said that depleting stock caused rise in the prices as ginners are holding the unsold stock in expectations of further increase in the rate. China and Bangladesh are purchasing yarn, pushing up rate nearly by Rs 100 and these factors are encouraging under the circumstances, they said.
But one thing, which is not good for the economy are negative factors such as load-shedding and gas shortage may cause slight fall in exports of textile items, they said. Furthermore, explaining the positive development between the neighbouring countries, (India and Pakistan), analyst said if the trade ties improve, this would help in revival of business activity, including cotton business, they said.
India has decided to allow foreign direct investment (FDI) from Pakistan, India's trade minister said on Friday, hours before the two countries were due to open a trading post on the border in the latest sign of improving economic ties. According to the Reuters the NY cotton futures fell on Friday for the first time in five days as the spate of short-covering that had propelled the nearby contract to 10-day highs petered out. Once the shorts had run for cover, selling as commodity indices rolled over to the July contract weighed on prices, market sources said. Weak grain and commodity markets due to concerns about Chinese growth also exerted pressure. The benchmark May cotton contract on the ICE Futures US exchange settled down 0.98 percent at 92.08 cents per lb, dealing from 91.01 to 93.75 cents, which was the highest intraday level since April 3, according to Thomson Reuters data.
The following deals were reported: 200 bales of cotton from Kassowal sold at Rs 5200, 300 bales of cotton from Sahiwal at the same rate, 200 bales of cotton from Chichawatni at Rs 5300, 400 bales of cotton from Pak Pattan at the same rate, 200 bales of cotton from Burewala at Rs 5500, 500 bales of cotton from Ahmed Pur at Rs 5800, 200 bales of cotton from Multan at Rs 6000 and same figure from Sadiqabad at Rs 6200.
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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 13.04.2012
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37.324 Kgs 5,700 130 5,830 5,780 +50
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Equivalent
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40 Kgs 6,109 130 6,239 6,185 +54
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