No major change was seen in present outlook on the cotton market on Saturday as ginners and growers adopted cautious attitude towards new deals, dealers said. The Karachi Cotton Association (KCA) official spot rate was unchanged at Rs 5,200, they said.
Prices of seedcotton were unchanged in Sindh at Rs 2000-2300 and in Punjab rates were also inert at Rs 2000-2500, they said. In ready dealings more than 13,000 bales of cotton changed hands at Rs 3,700-5,200, they added. Market sources said that the Pakistan Cotton Ginners Association (PCGA) is going to hold its meeting on Monday to ask the Trading Corporation of Pakistan (TCP) to help in arresting the continuous decreasing the rates of phutti and cotton.
After huge fall in the prices, the ginners and growers in an effort to keep prices at a certain level, held back the unsold cotton but seek TCP buying, analysts said. The fact is that huge cost of input such as urea and pesticides may be a major reason to adopt cautious attitude, on the other hand gloomy picture of world economy is also keeping both buyers and sellers apprehensive of unforeseen uncertainties, they added.
On Friday the NY cotton futures finished with small losses on sales by small speculators and due to the weak tone of outside markets, with most players sidelined by the long holiday weekend, analysts said. The cotton market was shut on Thursday for Thanksgiving. Trading ended an hour earlier than the normal closing time of 2 pm EST (1900 GMT) on Friday.
The key March cotton futures shed 0.04 cent to end at 90.87 cents per lb, after trading between 90.01 and 91.89 cents. For the week, the market was down almost 2.5 percent. Total volume traded on Friday was a little over 6,500 lots, almost three quarters below the 30-day norm, preliminary Thomson Reuters data showed.
The following deals were reported: 800 bales of cotton from Sultanabad sold at Rs 3700, 1200 bales of cotton from Shahdad Pur at Rs 3800/4200, 600 bales of cotton from Tando Adam at Rs 4700, 400 bales of cotton from Nawabshah at Rs 4500, 1000 bales of cotton from Upper Sindh at Rs 5000, 200 bales of cotton from Mian Channun at Rs 5000, 800 bales of cotton from Vehari at Rs 5000, 400 bales of cotton from Liaquat Pur at Rs 5050, 200 bales of cotton from Mubarik Pur at Rs 5050, 800 bales of cotton from Burewala at Rs 5050/5200, 1000 bales of cotton from Khanewal at Rs 5100/5200, 400 bales of cotton from Noor Pur at Rs 5100, 600 bales of cotton from Rahim Yar Khan at Rs 5100, 1000 bales of cotton from Bahawal Pur at Rs 5100, 400 bales of cotton from Shujabad at Rs 5150, 400 bales of cotton from Layyah at Rs 5150, 600 bales of cotton from Sadiqabad at Rs 5150, 600 bales of cotton from Tonsa Sharif at Rs 5200.
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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 25.11.2011
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37.324 Kgs 5,200 130 5,330 5,330 NIL
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Equivalent
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40 Kgs 5,573 130 5,703 5,703 NIL
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