KCA Official spot rate was sharply higher on the cotton market on Thursday as mills, spinners and exporters were active in forward buying of cotton, dealers said. The Karachi Cotton Association (KCA) official spot rate was raised by Rs 200 to Rs 5,700, they said.
In the meantime, prices of seedcotton in Sindh were unchanged at Rs 2200-2700 and in Punjab rates also held the overnight level at Rs 2400-2900, they said. In ready dealings above 40,000 bales of cotton changed hands at Rs 4,400-6100, they added. Marker sources said that buyers' persisting demand helped the rates to go up. Some of them said that it is surprising because there is huge supply of phutti, which is not allowing the growers to hold the stock for a long-time due to quality factor.
Other experts attributed the extended buying to quality factor because almost all buying was seen of the fine types, which almost meets the export obligations. Now, next direction of the market will depend on the demand and supply factor, if supply rises, prices could fall, otherwise rates may stabilise in the near future, they said.
On Wednesday the NY cotton futures settled mixed in a quietly traded session as players awaited release of a government sales report to see if top consumer China again bought large amounts of cotton, analysts said. The spot December cotton contract on ICE Futures US increased 0.84 cent to finish at $1.035 per lb, moving from $1.0207 to $1.0436. It was an inside day since the range was within Tuesday's $1.0011 to $1.0469 band. The now most-active March cotton futures fell 0.14 cent to settle at $1.0048 a lb, ranging from 98.45 cents to $1.0088. Total volume traded on Wednesday hit almost 19,500 lots, less than three percent below the 30-day norm, preliminary Thomson Reuters data showed.
The following deals were reported: 600 bales of cotton from Mir Pur Khas sold at Rs 4500, 400 bales of cotton from Nawabshah at Rs 4400/4500, 3000 bales of cotton from Khair Pur at Rs 5200/5300, 3000 bales of cotton from Upper Sindh at Rs 5650/5700, 1000 bales of cotton from Chistian at Rs 5500, 1000 bales of cotton from Haroonabad at Rs 5500, 400 bales of cotton from Hasil Pur at Rs 5500, 400 bales of cotton from Fort Abbas at Rs 5500, 1400 bales of cotton from Vehari at Rs 5590/5600, 400 bales of cotton from Yazman Mandi at Rs 5600, 600 bales of cotton from Mongi Bangla at Rs 5600, 200 bales of cotton from Kehror Pakka at Rs 5600, 200 bales of cotton from Basti Malook at Rs 5600, 600 bales of cotton from Dera Ghazi Khan at Rs 5700/5800, 400 bales of cotton from Jalal Pur at Rs 5700, 2000 bales of cotton from Bahawal Pur at Rs 5700/5800, 800 bales of cotton from Ahmed Pur at Rs 5700, 1000 bales of cotton from Noor Pur at Rs 5700/5800, 2400 bales of cotton from Burewala at Rs 5700/5800, 200 bales of cotton from Chiniot at Rs 5700, 1000 bales of cotton from Sadiqabad at Rs 5700, 600 bales of cotton from Uch Sharif at Rs 5700, 1000 bales of cotton from Layyah at Rs 5700, 400 bales of cotton from Liaquat Pur at Rs 5700, 1000 bales of cotton from Bakkhar at Rs 5750, 2000 bales of cotton from Khanewal at Rs 5850/5900, 3000 bales of cotton from Rahim Yar Khan at Rs 5800/5900, 3000 bales of cotton from Ali Pur at Rs 5900/6000, 400 bales of cotton from Shah Jamal at Rs 5900, 2600 bales of cotton from Fazil Pur at Rs 5900/6100, 400 bales of cotton from Mohammad Pur at Rs 5900, 1800 bales of cotton from Mian Wali at Rs 6000/6100, 4200 bales of cotton from Rajan Pur at Rs 6000/6100.
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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 16.11.2011
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37.324 Kgs 5,700 130 5,830 5,630 +200
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Equivalent
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40 Kgs 6,109 130 6,239 6,024 +215
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