Prices were higher on the cotton market on Wednesday as a result of increase in the mills' buying to meet the immediate needs, dealers said. The Karachi Cotton Association (KCA) spot rate was unchanged at Rs 9800, they said. In the meantime, seeds cotton prices in Sindh and Punjab moved up at Rs 3,900-4,700, they said.
In ready business nearly, 20,000 bales of cotton changed hand between Rs 9,500-10,200, they said. Some cotton experts said that no change was seen in the present outlook as supply was tight, which caused increasing demand by the needy mills. They said that ginners have some 1.0-1.2 million bales and same number of phutti arrivals are expected in the coming days, which may not bring down prices. Import of cotton from India will help in meeting the local mills' demand.
According to a report China's cotton imports in December rose 113 percent from a year earlier to 461,700 tonnes, an industry website said. Imports last month were up 266 percent from November, said www.tteb.com, citing customs data. The country imported a total of 2.84 million tonnes of cotton last year, up 86 percent on year, it said.
On Tuesday the US cotton futures closed up the daily trading limit on speculative buying ahead of a US government report that is expected to show reduced supplies in China and a smaller crop in flood-ravaged Australia, analysts said. The benchmark March cotton contract on ICE Futures US increased the daily 4.00-cent limit to settle at $1.4725 per lb, with the session low at $1.4315.
Volume traded was 17,200 lots, over 50 percent below the 30-day norm, Thomson Reuters preliminary data showed. In its December report, USDA pegged China's cotton ending stocks at 13.22 million (480-lb) bales, unchanged from the preceding month's estimate.
The following deals were reported: 800 bales of cotton from Shahdad Pur sold at Rs 9650-9700, 400 bales from Nawabshah at Rs 9700, 2000 bales from Khair Pur at Rs 10000, 2000 bales of cotton from Upper Sindh at Rs 10000-10200, 1200 bales from Haroonabad at Rs 9500, 400 bales from Hasil Pur at Rs 9600, 600 bales from Layyah at Rs 9750-9800, 400 bales from Tounsa Sharif at Rs 9900, 1800 bales from Fort Abbas at Rs 10000, 2000 bales from Rahim Yar Khan at Rs 10000, 800 bales from Khan Pur at Rs 10000, 1600 bales from Shadan Lund at Rs 10000, 800 bales from Rajan Pur at Rs 10000, 800 bales from Bahawal Pur at Rs 10000, 200 bales from Sadiqabad at Rs 10000, 400 bales from Ali Pur at Rs 10150 and 1000 bales from Khan Pur at Rs 10000-10200.
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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 11.01.2011
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37.324 Kgs 9,800 120 9,920 9,920 NIL
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Equivalent
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40 Kgs 10,503 120 10,623 10,623 NIL
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