Activity improved on the cotton market on Tuesday buyers and sellers managed to find a meeting ground, dealers said. The Karachi Cotton Association (KCA) official spot rate was raised by Rs 100 to Rs 5,300, they said. Prices of seedcotton in Sindh were at Rs 1800-2300 and in Punjab at Rs 2000-2600, they said.
In ready dealings above 13,000 bales of cotton changed hands at Rs 3,700-5,500, they added. Market sources said that under the circumstances when prices of cotton are falling due to easy supply locally and globally growers and ginners preferred to sell even below the psychological levels. The mills and spinners lay-hand over the all lots on market in anticipation that the Trading Corporation of Pakistan (TCP) may intervene in the market to help in stabilising the rates, they added.
According to the market sources cotton traders are little worried about the business as falling demand by the foreign importers is causing heavy losses to them. Situation in India, China and Bangladesh is not very different because of world recession, they added.
On Monday the NY cotton futures finished with small gains on buying by small investors although fiber contracts were off their session highs after initial advances ran out of gas, analysts said. The key March cotton futures rose 0.48 cent to end at 91.35 cents per lb, moving from 90.85 to 92.81 cents. The range was almost comparable to Friday's 90.01 to 91.89 cents band. Total volume traded on Monday was over 9,600 lots, almost 60 percent below the 30-day norm, preliminary Thomson Reuters data showed.
The following deals were reported: 600 bales of cotton from Sultanabad sold at Rs 3700, 200 bales from Mir Pur Khas at Rs 3800, 200 bales from Nawabshah at Rs 4400, 2000 bales of cotton from Khair Pur at Rs 4750-4800, 2000 bales of cotton from Upper Sindh at Rs 5200, 400 bales of cotton from Multan at Rs 5100, 400 bales of cotton from Dunia Pur at Rs 5100/5200, 200 bales of cotton from Chichawatni at Rs 5200, 200 bales of cotton from Hasil Pur at Rs 5200, 200 bales of cotton from Bahawal Nagar at Rs 5200, 1000 bales of cotton from Yazman Mandi at Rs 5250, 400 bales of cotton from Vehari at Rs 5350-5400, 800 bales of cotton from Fazil Pur at Rs 5400, 400 bales of cotton from Ali Pur at Rs 5400, 200 bales of cotton from Shujabad at Rs 5200, 200 bales of cotton from Noor Pur at Rs 5400, 400 bales of cotton from Layyah at Rs 5400, 600 bales of cotton from Khanewal at Rs 5400, 400 bales of cotton from Shadan Lund at Rs 5400, 200 bales of cotton from Tonsa Sharif at Rs 5400, 2000 bales of cotton from Rajan Pur at Rs 5400-5500, 400 bales of cotton from Mian Wali at Rs 5500.
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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 28.11.2011
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37.324 Kgs 5,300 130 5,430 5,330 +100
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Equivalent
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40 Kgs 5,680 130 5,810 5,703 +107
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