Official spot rate, after a short break, was raised by the Karachi Cotton Association (KCA) by Rs 500 to Rs 13,000 on Wednesday, dealers said on the cotton market. Karachi Cotton Association (KCA) official spot rate was raised up by Rs 500 to Rs 13000, they said.
Phutti prices in Sindh were at Rs 4500 and in Punjab rates were at Rs 6400, they said. Nearly 1500 bales of cotton changed hands at Rs 14000-14500 (on credit), they added. According to the market source, mills were sidelined due to higher prices. They said that it looks that prices may continue upward trend owing to fall in the unsold stock.
If, prices go up in the world market, the rates may touch new high at Rs 15000, they said. On Tuesday the US cotton futures finished the daily limit down on investor liquidation as the mill and speculative buying which powered the market to record highs dried up for the moment, analysts said.
The key May cotton contract on ICE Futures US fell the 7.00-cent limit to finish at $2.0714 per lb, with the day's top at $2.1575. Lou Barbera, cotton analyst at brokerage house VIP Commodities, said the correction may take the May contract down to the region around $1.9725. That would represent a 50 percent retracement of the rally which took off on February 25 and hoisted cotton prices to all-time highs. Volume traded on Tuesday though stood about 28,400 lots, over 10 percent below the 30-day norm, Thomson Reuters preliminary data showed. But open interest in the cotton market did not seem to be matching the surge in prices to new record highs.
Open interest in cotton stood at 175,640 lots as of March 7, up from the seven-month low at 174,074 lots hit on February 28, data from ICE Futures US showed. The following deals were reported : some 440 bales of cotton from Lodhran sold at Rs 14000, 200 bales from Bahawalpur at the same rate and 800 bales of cotton from Hasil pur at Rs 14500 (credit), they said.
===========================================================================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 08.03.2011
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37.324 Kgs 13,000 120 13,120 12,620 + 500
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Equivalent
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40 Kgs 13,932 120 14,052 13,516 + 536
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