As a result of higher trend in the NY cotton futures prices went up on the domestic cotton market on Wednesday, dealers said. The official spot rate was up by Rs 100 at Rs 5,500, they said. Prices of seedcotton in Sindh were at Rs 1800-2350 and in the Punjab at Rs 2000-2600, they said. In ready dealings about 15,000 bales of cotton changed hands at Rs 4,300-5700, they added.
Prices tracked the NY cotton futures as mills and spinners did buying to cover the immediate needs, other analysts said. On the other hand the ginners took full advantage of the opportunity, increased the asking prices to gain profit, they added. They said that prices may depict softness as the Pakistan Cotton Ginners Association (PCGA) issued fortnightly report till December 31, showing the phutti arrivals figure is 12.8 million bales, a rise against the last year figure.
According to the Reuters, the NY cotton futures settled at a two-month high on speculative short-covering driven in part by news that sowings in leading consumer China may be down sharply in 2012, analysts said. Benchmark March cotton futures rose 2.72 cents or nearly Three percent to finish at 98.19 cents per lb, dealing between 95.67 and 99.47 cents. It was the highest settlement for the spot contract since mid-November, Thomson Reuters data showed.
Volume jumped to around 31,000 lots, more than double the 30-day norm, according to preliminary Thomson Reuters data. News that China's cotton planting area in 2012 is expected to fall 10.5 percent due to reduced profits aided sentiment, she said.
The following deals were reported: 400 bales of cotton from Sanghar sold at Rs 4300, 400 bales of cotton from Shahdad Pur at Rs 4300, 400 bales of cotton from Kotri at Rs 4500, 400 bales of cotton from Kandaiyro at Rs 5500, 400 bales of cotton from Panu Aqil at Rs 5500, 800 bales of cotton from Saleh Pat at Rs 5500/5525, 400 bales of cotton from Arifwala at Rs 5100, 800 bales of cotton from Faqir Wali at Rs 5300, 1400 bales of cotton from Haroonabad at Rs 5300, 1400 bales of cotton from Fort Abbas at Rs 5400, 400 bales of cotton from Hasil Pur at Rs 5400, 400 bales from Bahawal Pur at Rs 5475, 1000 bales of cotton from Rajan Pur at Rs 5500/5700, 1200 bales of cotton from Mian Wali at Rs 5500, 200 bales of cotton from Dunia Pur at Rs 5500, 1000 bales of cotton from Shujabad at Rs 5525/5700, 400 bales of cotton from Lodhran at Rs 5550, 2000 bales of cotton from Kabir Wala at Rs 5550, 400 bales of cotton from Sadiqabad at Rs 5600, 600 bales of cotton from Gojra (BCI cotton) at Rs 5650, 400 bales of cotton from Jalal Pur at Rs 5650 and 800 bales of cotton from Fazil Pur at Rs 5700.
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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 17.01.2012
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37.324 Kgs 5,500 130 5,630 5,530 +100
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Equivalent
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40 Kgs 5,894 130 6,024 5,917 +107
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