Bullish sentiment was seen on cotton market on Tuesday as mills showed interest in fresh buying, but on the other hand the ginners were trying to raise the asking prices, dealers said. The Karachi Cotton Association (KCA) official spot rate was raised by Rs 300 to Rs 6300, they said.
The prices of seedcotton in Sindh were at Rs 2300-2600 and rates in Punjab were at Rs 2300-2800, they said. In ready dealings nearly 9000 bales of cotton changed hands between Rs 6,200-6,800, they added. Market sources said that panic buying of cotton was witnessed as continued rains in both Sindh and Punjab played havoc. Some dealers said that mills were active and making forward deals in anticipation of increase in prices.
It was also noted that the ginners were not willing to sell cotton at the present levels because they were hoping for increase in the rates, they added. The monsoon rains are continuing and may damage cotton standing crop, if rainy water not drained out from the field, they noted. It looks that prices may go up in the coming days, if monsoon rains continue, they said.
The NY cotton market was closed due to Labour Day holiday on Monday, they said. The following deals were reported: some 1000 bales of cotton from Tando Adam sold at Rs 6200-6450, 600 bales from Nooriabad at Rs 6200-6500, 400 bales from Nawabshah at Rs 6200, 200 bales from Saleh Pat at Rs 6500, 400 bales from Shujabad at Rs 6600, 400 bales from Rajanpur at Rs 6500, 800 bales from Bahawal Pur at Rs 6200-6500, 1000 bales from Chichawatni at Rs 6500, 800 bales from Burewala at Rs 6500, 400 bales of cotton from Multan at Rs 6500, 600 bales from Khanewal at Rs 6500, 400 bales from Lodhran at Rs 6500, 200 bales from Hasil Pur at Rs 6500, 400 bales from Haroonabad at Rs 6500, 200 bales from Kabirwala at Rs 6400, 600 bales from Mian Chunnun at Rs 6300, 200 bales from Mailsi at Rs 6200 and 200 bales from Bahawal Nagar at Rs 6200.
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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 05.09.2011
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37.324 Kgs 6,300 120 6,430 6,130 +300
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Equivalent
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40 Kgs 6,752 120 6,882 6,560 +322
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