Official spot rate maintained upward march on the cotton market on Tuesday amid slight fall in buying by the mills and exporters, dealers said. The Karachi Cotton Association (KCA) spot rate was extended overnight gains by Rs 100 to Rs 9,300. Seed cotton prices in Sindh and Punjab also gained Rs 100-200 to Rs 4,100-4,400, they said.
In ready business nearly 17,000 bales of cotton changed hand between Rs 9000-10,000, they added. Some analysts said that the mills were on the sidelines on expectations of likely fall in the current rates. Cotton buyers were hoping that the prices may stop tracking the overseas trend, other brokers said.
The NY cotton futures, after a short break, again started going up and prices are also on rise in the China cotton market, they added. It is most likely that the mills may not show so much interest in the fresh buying partly because of financial problem and may look at the countries, where the rates are cheaper, they said. On Monday the US cotton futures finished the daily limit up at a one-month top on light fund and speculative buying, with the market poised to hit a new record high due to tight supplies, analysts said.
The key March cotton contract on ICE Futures US increased 4.00 cents to close at $1.5412 per lb, within sight of the all-time record of $1.5723 hit on November. 10. Since trading around $1.10 on November. 23, cotton futures have increased almost 40 percent as tight supplies and strong mill demand reignited the rally. The volume of business though was light. Total volume traded was around 9,500 lots, over two-thirds below the 30-day average at 31,500 lots, Thomson Reuters preliminary data showed.
The following deals were reported: 400 bales of cotton from Bhawana sold at Rs 10,000, 200 bales from Kabirwala at the same rate, 1000 bales of cotton from Sanghar at Rs 9000-9200, 600 bales of cotton from Tando Adam at Rs 9300, 2000 bales of cotton from Nawabshah at Rs 9225-9300, 1000 bales of cotton from Shahdad Pur at Rs 9300, 600 bales of cotton from Khair Pur at Rs 9400-9500, 1000 bales of cotton from Upper sindh at Rs 9500, 600 bales of cotton from Bahawal Nagar at Rs 9200/9300, 1200 bales of cotton from Faqir Wali at Rs 9200/9300, 600 bales of cotton from Burewala at Rs 9200, 200 bales of cotton from Haroonabad at Rs 9200, 200 bales of cotton from Jahanian at Rs 9200, 200 bales of cotton from Vegaru at Rs 9200, 600 bales of cotton from Mian Chano at Rs 9300, 200 bales of cotton from Sahiwal at Rs 9400, 600 bales of cotton from Chichawatni at Rs 9400, 200 bales of cotton from Rahim Yar Khan at Rs 9500, 2200 bales of cotton from Kassowal at Rs 9500, 400 bales of cotton from Shujabad at Rs 9500, 200 bales of cotton from Dera Ghazi Khan at Rs 9500, 200 bales of cotton from Khanweal at Rs 9500, 200 bales of cotton from Chinnot at Rs 9500, 1400 bales of cotton from Ahmed Pur at Rs 9500, 400 bales of cotton from Liaquat Pur at Rs 9500, 400 bales of cotton from Bahawal Pur at Rs 9500, 400 bales of cotton from Khan Pur at Rs 9500`.
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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 20.12.2010
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37.324 Kgs 9,300 120 9,420 9,320 +100
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Equivalent
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40 Kgs 9,967 120 10,087 9,980 +107
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