The Karachi Cotton Association (KCA) reduced the official spot rate by Rs 50 on Tuesday after the Pakistan Cotton Ginners Association (PCGA) released the arrivals figure of seedcotton till December 31, 2011, dealers said. The official spot rate, after maintaining firm trend, was slashed by Rs 50 to Rs 5,350, they said.
Prices of seedcotton in Sindh were unchanged at Rs 1700-2300 and in the Punjab at Rs 2000-2700, they said. In ready dealings over 14,000 bales of cotton changed hands at Rs 5000-5,500, they added. Market sources said that ginners were firm as they did not show any panic for selling the unsold stock on expectations of announcement of Trading Corporation of Pakistan (TCP) buying in the Economic Co-ordination Committee (ECC) meeting during the current week, they added.
In the meantime, the PCGA fortnightly phutti arrivals till December 31, reported at 12.03 million bales of cotton, which caused slight decline in the spot rate, they said. It is expected that the cotton production may reach 13-14 million bales for the current season, but, it is disappointing factor for the cotton traders that demand is not coming up in local or foreign markets, experts said. World recession hit the international business community badly and it looks that revival of economic activity will take time the world over, they added.
The following deals were reported: 400 bales of cotton from Chistian sold at Rs 5000, 400 bales of cotton from Murid Wala at Rs 5100, 400 bales of cotton from Sahiwal at Rs 5100, 600 bales of cotton from Faqir Wali at Rs 5150, 1000 bales of cotton from Bahawal Nagar at Rs 5200, 1000 bales of cotton from Burewala at Rs 5200, 200 bales of cotton from Hasil Pur at Rs 5200, 1000 bales of cotton from Fort Abbas at Rs 5300, 400 bales of cotton from Lodhran at Rs 5325, 600 bales of cotton from Yazman Mandi at Rs 5350, 400 bales of cotton from Liaquat Pur at Rs 5400, 600 bales of cotton from Ahmed Pur at Rs 5400, 400 bales of cotton from Kehror Pakka at Rs 5400, 2000 bales of cotton from Sadiqabad at Rs 5400, 400 bales of cotton from Jalal Pur at Rs 5425, 400 bales of cotton from Basti malook at Rs 5425, 800 bales of cotton from Mian wali at Rs 5500, 1000 bales of cotton from Rahim Yar Khan at Rs 5500, 1600 bales of cotton from Khan Pur 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 02.01.2012
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37.324 Kgs 5,350 130 5,480 5,530 -50
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Equivalent
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40 Kgs 5,734 130 5,864 5,917 -53
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