Firmness prevailed on the cotton market on Thursday as exporters did buying to meet the immediate needs, dealers said. The Karachi Cotton Association (KCA) official spot rate was unchanged at Rs 5,300, they said. Prices of seedcotton in Sindh were unchanged at Rs 1800-2300 and in Punjab at Rs 2000-2500, they said.
In ready dealings over 20,000 bales of cotton changed hands at Rs 3,850-5,400, they added. Some brokers said that mills and spinners were not so much interested in buying as yarn is not in demand by the European countries and the local buyers were also inactive due to financial problem.
Other analysts were of the view that the exporters were active to cover the immediate requirements, they said and adding that it is most likely that the business activity may not show significant improvement in the coming days. Reuters added: On Wednesday cotton futures settled lower on light investor sales, after renewed worries over the euro zone debt crisis and the market's inability to race past topside resistance, analysts said.
Key March cotton futures dropped 1.50 cents or 1.6 percent to finish at 92.31 cents per lb, after trading between 91.75 and 93.80 cents. The range was very close to the Tuesday trading band of 91.51 to 93.63 cents. Volume traded on Wednesday stood at around 8,400 lots, some two-thirds under the 30-day average, according to ICE Futures data.
The following deals were reported: 400 bales of cotton from Sultanabad sold at Rs 3850, 600 bales of cotton from Mir Pur Khas at Rs 4000, 1000 bales of cotton from Khair Pur at Rs 4750, 2000 bales of cotton from Upper Sindh at Rs 5150/5200, 200 bales of cotton from Bahawal Nagar at Rs 5000, 200 bales of cotton from Faqirwali at Rs 5000, 1000 bales of cotton from Haroonabad at Rs 5050/5100, 400 bales of cotton from Adda Flour at Rs 5050, 400 bales of cotton from Hasil Pur at Rs 5100, 200 bales of cotton from Gajjo Mandi at Rs 5150, 1000 bales of cotton from Bahawal Pur at Rs 5150/5190, 1000 bales of cotton from Ahmed Pur at Rs 5150/5300, 600 bales of cotton from Burewala at Rs 5200/5250, 400 bales of cotton from Vehari at Rs 5200, 400 bales of cotton from Bakhar at Rs 5200, 400 bales of cotton from Maroot at Rs 5200, 2000 bales of cotton from Khanewal at Rs 5200/5250, 400 bales of cotton from Jan Pur at Rs 5300, 1200 bales of cotton from Layyah at Rs 5300, 1000 bales of cotton from Rahim Yar Khan at Rs 5300, 400 bales of cotton from Sadiqabad at Rs 5300, 1000 bales of cotton from Dera Ghazi Khan at Rs 5300, 400 bales of cotton from Muhammad Pur at Rs 5300, 600 bales of cotton from Ali Pur at Rs 5400, 1200 bales of cotton from Rajan Pur at Rs 5400.
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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 07.12.2011
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37.324 Kgs 5,300 130 5,430 5,430 NIL
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Equivalent
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40 Kgs 5,680 130 5,810 5,810 NIL
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