Rates were sharply higher on the cotton market on Friday amid persisting demand and continued rise in the global market, dealers said. Karachi Cotton Association (KCA) official spot rate was unchanged at Rs 11,500, they said. Phutti prices in Sindh and Punjab were at overnight level Rs 4500-5500, they said.
In the ready business about 18,000 bales of cotton changed hands between Rs 10,500-13,000 during improved business, they added. According to the market sources, number of buyers increased as prices hit the new highs in the world and local markets. They said that it is most likely that the rates may stay at the present levels as mills may adopt wait-and-see attitude in expectations of fall in the prices. On Thursday the US cotton futures surged to a fresh 150-year high, as funds and mills continued to chase the rising market on the spectre of dwindling global supplies. Analysts said the benchmark contract looked poised to hit $2 a lb in the days ahead.
March cotton on ICE Futures US rose the 7-cent daily limit to finish at $1.8758 per lb, the highest price since the American Civil War. Trading volume was heavy near 37,600 lots, almost two-thirds higher than the 30-day norm, Thomson Reuters preliminary data showed.
The following deals were reported: 400 bales of cotton from Shahdadpur sold at Rs 11000, 1200 bales of cotton from Tando Adam at Rs 11000-11500, 400 bales of cotton from Khair Pur at Rs 12000, 1000 bales of cotton from Rohri at Rs 11500, 2000 bales of cotton from Dehrki at Rs 13000, 200 bales of cotton from Duniya Pur at Rs 10500, 400 bales of cotton from Garha Morr at Rs 10600, 1400 bales of cotton from Hasil Pur at Rs 11000, 400 bales of cotton from Jahanian at Rs 11000, 1400 bales of cotton from Rahim Yar Khan at Rs 11500/12000, 2400 bales of cotton from Sadiqabad at Rs 12000, 1200 bales of cotton from Mian Wali at Rs 12000, 400 bales of cotton from Adda Floor at Rs 12100, 400 bales of cotton from Jahanian at Rs 12500 (Credit), 800 bales of cotton from Jam Pur at Rs 12500 (credit).
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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 10.02.2011
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37.324 Kgs 11,500 120 11,620 11,620 NIL
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Equivalent
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40 Kgs 12,325 120 12,445 12,445 NIL
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