Prices firm at the closing session of the year 2011 on the cotton market amid brisk activity on Saturday, dealers said. The official spot rate was unchanged at Rs 5,400, they said. Prices of seed-cotton in Sindh were at Rs 1700-2300 and in the Punjab at Rs 1600-2700, they said. In ready dealings over 27,000 bales of cotton changed hands at Rs 3,700-5,500, they added.
According the market sources, all eyes are set on the decision of the Economic Co-ordination Committee (ECC) about the support price of cotton in its next week meeting. In the meantime, the mills showed fresh interest in cotton buying but on the other hand, the exporters were on the sidelines to see the development, they added.
Some cotton traders imported cotton from India due to quality and avoided the local stuff mainly because of higher prices and poor quality factor, they added.
Reuters adds: On Friday the NY cotton ended 2011 as the worst-performing commodity market of the year, falling 36.6 percent from 2010 as record prices boosted output and decimated demand while a shaky global economy scared off investors.
Benchmark US cotton futures closed at 91.80 cents per lb on Friday, up from 91.63 a day earlier but well off a record above $2.20 set in March. Friday's settlement was down 36.6 percent from December 31, 2010, when it settled at $1.4481 per lb. Last year, cotton was the second-best-performing market, rising more than 90 percent. Open interest, an indicator of investor exposure, peaked at 223,405 lots on February 9, data from ICE Futures US showed.
The following deals were reported: 200 bales of cotton from Tando Adam sold at Rs 3700, 200 bales from Sultanabad at Rs 3950, 400 bales from Kazi Ahmed at Rs 4900, 2000 bales from Khair Pur at Rs 4900/5000, 3000 bales from Upper Sindh at Rs 5200/5250, 2000 bales of cotton from Haroonabad at Rs 5000/5200, 1000 bales of cotton from Faqir Wali at Rs 5000/5200, 400 bales of cotton from Vehari at Rs 5150, 1000 bales of cotton from Fort Abbas at Rs 5200, 800 bales of cotton from Hasil Pur at Rs 5250, 400 bales of cotton from Qaboola at Rs 5300, 1200 bales of cotton from Lodhran at Rs 5350/5425, 400 bales of cotton from Dunia Pur at Rs 5350, 1400 bales of cotton from Bahawal Pur at Rs 5375, 2200 bales of cotton from Khanewal at Rs 5400, 2400 bales of cotton from Noor Pur at Rs 5400/5475. 1000 bales of cotton from Liaquat Pur at Rs 5400, 400 bales of cotton from Shujabad at Rs 5400, 1000 bales of cotton from Jalal Pur at Rs 5400/5425, 2000 bales of cotton from Sadiqabad at Rs 5400/5450, 2000 bales of cotton from Rahim Yar Khan at Rs 5450, 1000 bales of cotton from Khan Pur at Rs 5450, 400 bales of cotton from Rajan Pur at Rs 5450, 400 bales of cotton from Dera Ghazi Khan at Rs 5500 and 400 bales of cotton from Mian Wali at Rs 5500.
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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 30.12.2011
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37.324 Kgs 5,400 130 5,530 5,530 NIL
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Equivalent
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40 Kgs 5,787 130 5,917 5,917 NIL
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