Ginners lower asking prices as cotton demand falls worldover

Unfavourable circumstances, forced the ginners to bring down the asking prices on the cotton market on Thursday, dealers said. Karachi Cotton Association (KCA) official spot rate was inert at Rs 12,000, they said. In Sindh and Punjab phutti price of low type was at Rs 3500 and superior type at Rs 4500, they said. In ready business nearly 4000 bales of cotton changed hands between Rs 10500-12000, they added.
According to the market sources, falling demand by the mills and spinners propelled ginners to reduce the prices as they were hoping for sharp rise due to short crop. It is most likely that many yarn mills may be closed due to very poor demand in both the local and international market, they said. They also said, it's a fact that demand and prices coming down the world over and it appears that this factor may force the sellers to cut prices further.
On Wednesday the US cotton futures settled lower for a second day in a row on Wednesday as funds and merchants sold amid weaker textile demand and price pressure from new-crop sales in the Southern Hemisphere, analysts said. The key May cotton contract on ICE Futures US shed 2.38 cents to settle at $1.9735 per lb, trading from $1.967 to $2.0673.
Second-position July sustained the biggest losses on the board by dropping 4.93 cents to close at $1.8064 per lb. The new-crop December cotton contract declined 0.86 cent to finish at $1.347. Total trading volume was around 42,200 lots, almost two-thirds above the 30-day norm, Thomson Reuters preliminary data showed.
The following deals were reported: nearly 200 bales of cotton from Mir Pur Khas sold at Rs 10500, same figure from Ghotki at Rs 12000, 400 bales of cotton from Rajan Pur at the same rate, 200 bales from Multan at Rs 11800, 400 bales from Fazilpur at Rs 11400-12000, 200 bales from Mohammadpur Dewan at Rs 11400, 1200 bales from Rahim Yar Khan at Rs 11000-11500, 600 bales from Shujaabad at Rs 11000, same figure from Vehari at the same rate, same number from Samanabad at the same rate and 200 bales from Haroonabad at Rs 10500.

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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 13.04.2011

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37.324 Kgs      12,000       120      12,120       12,120               NIL

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Equivalent

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40 Kgs          12,860       120      12,980       12,980               NIL

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