Spot rate, prices in ready turn softer in nominal activity on cotton market

Spot rate and prices in ready dealings fell on the cotton market on Monday in process of slow trading, dealers said. The official spot rate was curtailed by Rs 100 to Rs 5,400, they said. Seedcotton prices in Sindh were at Rs 1800-2300 and in the Punjab at Rs 2200-2650, they said.
In ready dealings approximately 2000 bales of cotton changed hands at Rs 3800-5675, they added. Business activity was down as mills and spinners remained on the sidelines due to sluggish demand by foreign and local buyers, Naseem Usman said. He also said traders of cotton and readymade garments were also worried about the fall in daily intake, as a result of decline, they are facing financial problems.
Unsold stock, on the other hand, is causing great concern, they said. Cotton businessmen, in India, Bangladesh and China were also facing the same problems, other experts said. World leading economies are still in woods, the experts are trying hard to bring normalcy in the fundamentals but most of them feel that it will take time, they added. Basic indicator is trend in the NY cotton futures, which is out of track during the last several sessions due to heavy losses, they said.
The following deals were reported: 400 bales of cotton from Mir Pur Khas sold at Rs 3800, 200 bales of cotton from Dahran Wala at Rs 5000, 400 bales of cotton from Haroonabad at Rs 5000, 400 bales of cotton from Dunia Pur at Rs 5250, 200 bales ofcotton from Head Rajkan at Rs 5275 and 400 bales from Mian Wali at Rs 5675.

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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 25.02.2012

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37.324 Kgs       5,400       130       5,530        5,630              -100

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Equivalent

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40 Kgs           5,787       130       6,097        6,024              -107

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