Softness enters the domestic cotton market on Friday as a result of continued downward trend in the NY cotton futures, dealers said.

The official spot rate gave up overnight firmness, losing Rs 100 to Rs 5,700, they said.

Prices of seedcotton in Sindh were at Rs 1800-2300 and in the Punjab at Rs 2200-2650, they said.

In ready dealings approximately 13,000 bales of cotton changed hands at Rs 4,600-6000, they said.

Some brokers said that slight fall was seen in the business activity as some mills and spinners preferred sidelines on hopes of decline in the rates, in the meantime, other exporters and mills continued buying of cotton as they said that they should not wait for slide in prices because ginners have not much fine type.

The ginners were not lowering the asking prices of good type and this factor may not allow sharp fall in the prices, instead, the rates may retain the overnight levels, Naseem Usman said.

General trend in the local market is sluggish because of falling demand and rising production the world over, other analysts said.

On Thursday the NY cotton futures finished lower on investor sales as a large increase in world cotton ending stocks in a government crop report weighed on fibre contracts, analysts said.

Benchmark March cotton on ICE Futures US declined 3.24 cents, or almost 3.5 percent, to finish at 90.38 cents per lb, dealing from 90.23 to 94.44 cents, Reuters adds.

The following deals were reported: 200 bales of cotton from Tando Adam sold at Rs 4600, 200 bales of cotton from Ghotki at Rs 5750, 1000 bales of cotton from Obaro at Rs 6000, 800 bales of cotton from Daranwala at Rs 5250, 800 bales of cotton from Faqir Wali at Rs 5250, 1000 bales of cotton from Haroonabad at Rs 5250, 400 bales of cotton from Gojra at Rs 5400, 1000 bales of cotton from Vehari at Rs 5425/5475, 400 bales of cotton from Fort Abbas at Rs 5450, 1800 bales of cotton from Hasil Pur at Rs 5450/5500, 400 bales of cotton from Chistian at Rs 5450, 400 bales of cotton from Mamo Kanjan at Rs 5500, 400 bales of cotton from Rinala Khurd at Rs 5500, 800 bales of cotton from Bahawal Pur at Rs 5500, 400 bales of cotton from Rajan Pur 5750, 800 bales of cotton from Kabbir Wala at Rs 5750/5800, 200 bales of cotton from Multan at Rs 5800, 200 bales of cotton from Kacha Kho at Rs 5800, 600 bales of cotton from Basti Malook at Rs 5800, 400 bales of cotton from Mian Wali at Rs 6000.

=========================================================================== 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 09.02.2012 =========================================================================== 37.324 Kgs 5,700 130 5,830 5,930 -100 --------------------------------------------------------------------------- Equivalent --------------------------------------------------------------------------- 40 Kgs 6,109 130 6,239 6,346 -107 ===========================================================================

Copyright Business Recorder, 2012

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