Strong demand pushes rates higher; spot rate raised to Rs 6,300 on cotton market

Strong mills and spinners demand pushed the prices higher on the cotton market on Saturday in process of trading, dealers said. The Karachi Cotton Association (KCA) official spot rate was maintained climb, raising by Rs 100 more to Rs 6,300, they said. Prices of seed-cotton in Sindh were at Rs 2300-2900 and rates in Punjab were at Rs 2400-3100, they said.
In ready dealings approximately 17,000 bales of cotton changed hands between Rs 5,250-6,600, they said. Explaining about the recovery in the prices, Naseem Usman said that upward trend in the NY cotton market, expected cut in the interest rate in Monetary policy, measures to bring down load shedding of electricity and in addition better quality of cotton also attracted the major buyers as they entered the market to finalise the deals.
Other brokers said that exporters entered the market and on the other hand, the growers were trying to avoid panic selling to keep rates at reasonable level. On Friday, the US cotton futures finished lower for the first time in 5 sessions, weighed down by light investor sales as traders looked toward release of a key government crop report next week, analysts said.
The key December cotton contract on ICE Futures US fell 0.75 cent to end at $1.0198 per lb, trading from $1.0135 to $1.064. The market has traded in a rough band from 98 cents to $1.04 for the last 11 sessions. Total volume traded on Friday hit almost 6,300 lots, more than 50 percent below the 30-day norm, preliminary Thomson Reuters data showed. Total volume traded on Thursday on the cotton market reached 8,606 lots, the lowest amount traded since September 16, ICE futures US data showed.
The following deals were reported: 400 bales of cotton from Khanewal sold at Rs 6,600, 200 bales of cotton from Nawabshah at Rs 5650, 200 bales of cotton from Shahdad Pur at Rs 5900, 2000 bales of cotton from Khair Pur at Rs 5250/6300, 1000 bales of cotton from Upper Sindh at Rs 6250/6300, 200 bales of cotton from Khipro at Rs 5500, 1000 bales of cotton from Vehari at Rs 6100/6300, 400 bales of cotton from Mian Chanon at Rs 6125/6210, 1000 bales of cotton from Chichawatni at Rs 6200/6300, 200 bales of cotton from Murid Wala at Rs 6200, 1000 bales of cotton from Hasil Pur at Rs 6200, 200 bales of cotton from Bahawal Nagar at Rs 6200, 600 bales of cotton from Chistian at Rs 6200, 600 bales of cotton from Rahim Yar Khan at Rs 6200/6500, 400 bales of cotton from Ahmed Pur at Rs 6200 at Rs 6200/6300, 200 bales of cotton from Abdul Hakim at Rs 6200, 200 bales from Shah Jiwana at Rs 6200, 200 bales of cotton from Kahroor Pacca at Rs 6250, 200 bales of cotton from Garh Maharaja at Rs 6250, 200 bales of cotton from Quershi Pur at Rs 6275, 600 bales of cotton from Layyah at Rs 6275/6300, 200 bales of cotton from Dera Ghazi Khan at Rs 6275, 200 bales of cotton from Deepal Pur at Rs 6300, 200 bales of cotton from Jam Pur at Rs 6300, 200 bales of cotton from Tiba Sultan Pur at Rs 6300, 800 bales of cotton from Burewala at Rs 6350/6400, 200 bales of cotton from Faqir Wali at Rs 6350, 400 bales of cotton from Shadan Lund at Rs 6400, 1000 bales of cotton from Rajan Pur at Rs 6400, 400 bales from Kabirwala at Rs 6400, 400 bales of cotton from Haroonabad at Rs 6400, 400 bales of cotton from Khanewal at Rs 6400 and 600 bales of cotton from Mianwali at Rs 6400/6500.

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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 07.10.2011

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37.324 Kgs       6,300       130       6,430        6,330              +100

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Equivalent

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40 Kgs           6,752       130       6,882        6,775              +107

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