Hectic trading was seen by the mills on the cotton market amid rising speculations about further rise in the prices, brokers said on Friday. The Karachi Cotton Association (KCA) spot rate was raised by Rs 100 to Rs 9800, they said. Seed cotton prices in Sindh and Punjab were unchanged at Rs 3,900-4,600, they said.
In ready business nearly, 32,000 bales of cotton changed hand between Rs 9,475-10,000, they added. Market sources said that they (mills) have no option except to continue buying of fine quality cotton owing to volatile NY cotton futures. The ginners were not lowering the rates of cotton due to shortage of crop. Country needs more or less 15 million bales of cotton to meet the requirement, despite importing of stuff, we are short of demand, they said. On Thursday, US cotton ended down about 3 percent on Thursday after rising by almost the daily limit on speculative buying before falling as much on selling related to a re-balancing of cotton holdings by commodity indexes.
"It was an interesting day in cotton where we travelled over nine handles," Mike Stevens, an independent cotton analyst in Mandeville, Louisiana, said, using market jargon to describe the volatile session. Benchmark March cotton contracts on ICE Futures US closed down 3.98 cents, or 2.7 percent, at $1.4122 per lb. The contract neared its four-cent trading limit to set a one-week peak at $1.4909. In later trading, it fell almost four cents to hit a session low of $1.4120.
The following deals were reported : 600 bales of cotton from Shahdad Pur sold at Rs 9600, 800 bales from Nawabshah at Rs 9600-9800, 3000 bales from Upper Sindh at Rs 9900-10000, 200 bales from Haroonabad at Rs 9475, 1000 bales from Bakkahar at Rs 9500, 400 bales from Faqir Wali at Rs 9600, 400 bales from Bahawal Nagar at Rs 9600, 800 bales from Ali Pur at Rs 9800, 4000 bales from Khanewal at Rs 9800-10000, 3000 bales from Sadiqabad at Rs 9900-10000, 10000 bales from Rahim Yar Khan at Rs 10000, 2000 bales from Khan Pur at Rs 10000, 1400 bales from Ahmed Pur at Rs 10000, 400 bales from Chani Goth at Rs 10000, 400 bales from Muhammad Pur at Rs 10000, 1000 bales of cotton from Vehari at Rs 10000, 800 bales from Rajan Pur at Rs 10000, 400 bales from Bahawal Pur at Rs 10000, 400 bales from Pul Baggar at Rs 10,000, 1000 bales from Shah Jamal at Rs 10000 and 400 bales from Jalal Pur at Rs 10,000.
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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 06.01.2011
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37.324 Kgs 9,800 120 9,920 9,820 +100
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Equivalent
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40 Kgs 10,503 120 10,623 10,515 +108
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