Official spot rate was lower by Rs 50 on the cotton market on Wednesday amid modest trading, dealers said. The official spot rate was lower by Rs 50 to Rs 5,350, they said. Prices of seedcotton in Sindh were at Rs 1800-2300 and in the Punjab rates were at Rs 2200-2650, they said. In ready dealings, nearly 6000 bales of cotton changed hands at Rs 5000-5700, they said.
In the absence of motivating factors, the cotton market was trading in a narrow range, Naseem Usman said. He, however, hoped that the trading activity may improve as a result of some demand by foreign buyers. Furthermore, he was of the opinion that India has finalised the deals of about 12.5 million bales of cotton with the overseas buyers, which indicates that India may start purchasing of cotton to meet it's local demand in the coming days. The traders were surprised over the slow activity in the cotton market despite the rising trend in the NY cotton futures during last couple of sessions, they said.
The ginners did not lower the asking prices to attract the mills and spinners in expectations of rise in the rates, they added. According to the Reuters, on Tuesday, the NY cotton futures were higher on investors' short-covering fuelled by a surge in the grain complex, strong financial markets and weaker dollar, analysts said.
Benchmark May cotton on ICE Futures US went up 1.57 cents to finish at 92.24 cents per lb, trading from 90.74 to 92.74 cents. The market was well supported above last week's low near 89 cents. Volume traded on Tuesday was abound 12,400 lots, preliminary Thomson Reuter data showed.
The following deals were reported: 200 bales of cotton from Multan at Rs 5000, 400 bales from Faqir Wali at Rs 5000, 200 bales from Dahran Wala at Rs 5000, 400 bales of cotton from Haroonabad at Rs 5000, 200 bales of cotton from Murid Wala at Rs 5100, 400 bales from Hasil Pur at Rs 5100/5200, 200 bales of cotton from Vehari at Rs 5200, 200 bales from Gojra at Rs 5200, 200 bales from Madrasa at Rs 5300, 400 bales from Ahmed Pur at Rs 5300, 400 bales from Bahawal Pur at Rs 5400, 600 bales from Lodhran at Rs 5400-5450, 400 bales of cotton from Tonsa Sharif at Rs 5600, 400 bales from Rahim Yar Khan at Rs 5625 and 1000 bales from Mian wali at Rs 5600-5700, they said.
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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 28.02.2012
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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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