Spot rate, phutti prices up on cotton market as growers stop panic selling

Prices were higher on the cotton market on Monday as the growers stopped panic selling just to avoid unrealistic falling of the rates, dealers said. The Karachi Cotton Association (KCA) official spot rate after maintaining stable for many weeks, was increased by Rs 50 to Rs 5,500, they said.
Prices of seedcotton of both low and best types in Sindh were higher by Rs 100 to Rs 2000-2600 and rates in Punjab followed the same pattern, gaining same amount to Rs 2400-2800, they said. In ready dealings about 20,000 bales of cotton changed hands at Rs 3,900-5,700, they added. Commenting on the fresh rise in the prices, Naseem Usman said that it was strategic move by the growers to resist sharp fall in the prices and it really succeeded.
In the coming days prices may depict firmness as exporters were also in the arena, which likely to help rate to keep a certain level, he said. According to a report, China's cotton output in 2011 is expected to increase 21 percent from a year earlier to 7.55 million tonnes, a government think tank said.
The estimate by the information centre under the China National Cotton Reserves Corp, given in a report published on www.cncotton.cn, is both higher than an earlier government estimate of 7.2 million tonnes and an industry survey of 7.4 million tonnes.
The following deals were reported: 400 bales of cotton from Khipro sold at Rs 3900, 2000 bales of cotton from Khair Pur at Rs 4900-5100, 1000 bales of cotton from Upper Sindh at Rs 5350, 400 bales of cotton from Haroonabad at Rs 5375-5400, 400 bales of cotton from Lodhran at Rs 5500, 200 bales of cotton from Jahanian at Rs 5500, 1000 bales of cotton from Ahmed Pur at Rs 5600, 2000 bales of cotton from Bahawal Pur at Rs 5600, 1000 bales of cotton from Chichawatni at Rs 5600, 200 bales of cotton from Shujabad at Rs 5600, 400 bales of cotton from Arif Wala at Rs 5600, 1000 bales of cotton from Burewala at Rs 5600, 200 bales of cotton from Mian Channo at Rs 5600, 400 bales of cotton from Ali Pur at Rs 5600, 3000 bales of cotton from Rahim Yar Khan at Rs 5600-5700, 800 bales of cotton from Sadiqabad at Rs 5600, 1000 bales of cotton from Khanewal at Rs 5700, 2600 bales of cotton from Rajan Pur at Rs 5700 and 400 bales of cotton from Mian wali at Rs 5700.

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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 12.11.2011

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37.324 Kgs         5,500      130        5,630        5,580            + 50

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Equivalent

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40 Kgs             5,894      130        6,024        5,971            + 53

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