Official spot rate was lowered on the cotton market on Tuesday in process of moderate trading, dealers said.

The Karachi Cotton Association (KCA) spot rate was lowered by Rs 200 to 8,900.

Seed cotton prices in Sindh and Punjab were inert at Rs 3900-4,200, they said.

In ready business trading activity was moderate as nearly 15,000 bales of cotton changed hands between Rs 8,500-9,200, they said.

Market sources said that mills showed interest but again did cautious buying ahead of holidays.

Trading was moderate as mills curtailed the daily intake ahead of holidays because of Muharram, they said.

In the meantime, prices in ready dealings resisted sharp losses due to higher trend in the NY cotton futures and in China cotton rates, they added.

On Monday the US cotton futures ended up the daily limit at a one-month top on speculative buying, but dealings were light as most players seemed content to remain on the sidelines for the moment, brokers said.

The benchmark March cotton contract on ICE Futures US rose the 4.00 cents daily limit to finish at $1.4097 per lb, with the session low at $1.3697.

It was the highest close for the second position cottton contract in over a month Total volume traded hit about 12,500 lots, about two-thirds below the 30-day average of 34,500 lots, Thomson Reuters preliminary data showed.

The following deals were reported: 600 bales of cotton from Sanghar sold at Rs 8800, 400 bales of cotton from Tando Adam at Rs 8850, 400 bales of cotton from Khair Pur at Rs 9000, 400 bales of cotton from Upper Sindh at Rs 9200, 800 bales of cotton from Haroonabad at Rs 8500/8600, 1400 bales of cotton from Burewala at Rs 8700/9000, 1200 bales of cotton from Mian Channo at Rs 8900/9000, 400 bales of cotton from Jalal Pur at Rs 9000, 1000 bales of cotton from Ali Pur at Rs 9000, 200 bales of cotton from Shah Jamal at Rs 9000, 400 bales of cotton from Garh Mahraja at Rs 9000, 800 bales of cotton from Fort Abbas at Rs 9000, 400 bales of cotton from Chistian at Rs 9000, 400 bales of cotton from Chichawatni at Rs 9000, 600 bales of cotton from Bahawal Pur at Rs 9000, 200 bales of cotton from Ahmed Pur at Rs 9000, 400 bales of cotton from Hasil Pur at Rs 9000, 600 bales of cotton from Gaggo Mandi at Rs 9000, 200 bales of cotton from Uch Sharif at Rs 9000, 400 bales of cotton from Shujabad at Rs 9000, 200 bales of cotton from Mongi Bangla at Rs 9000, 200 bales of cotton from Vehari at Rs 9000, 400 bales of cotton from Rajan Pur at Rs 9200 and 2000 bales of cotton from Rahim Yar Khan at Rs 9200.

=========================================================================== The KCA Official Spot Rate for Local Dealings in Pak Rupees --------------------------------------------------------------------------- FOR BASE GRADE 3 STAPLE LENGTH 1-1/32" --------------------------------------------------------------------------- MICRONAIRE VALUE BETWEEN 3.8 TO 4.9 NCL =========================================================================== Rate Ex-Gin Upcountry Spot Rate Spot Rate Difference For Price Ex-Karachi Ex.<br/><br/>KHI.<br/><br/>As Ex-Karachi on 13.12.2010 =========================================================================== 37.324 Kgs 8,900 120 9,020 9,220 -200 --------------------------------------------------------------------------- Equivalent --------------------------------------------------------------------------- 40 Kgs 9,538 120 9,658 9,872 -214 ===========================================================================

Copyright Business Recorder, 2010

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