Thanks to the Trading Corporation of Pakistan's (TCP) likely entry, which played a stabilising role in recovering the prices on the cotton market, dealers said on the cotton market on Saturday. The Karachi Cotton Association (KCA) maintained official spot rate ise for the second day in a row, by Rs 100 to Rs 5,100, they said.
Prices of seedcotton in Sindh were at Rs 1600-2300 and in the Punjab at Rs 1800-2600, they said. In ready dealings nearly 10,000 bales of cotton changed hands at Rs 3700-5,200, they added. Some analysts were of the view that mills and spinners were active buyer in covering the ready off-take but most of them did buying of the fine type amid rising market anticipation of TCP's entry anytime, as it's plan for buying priorities is under process and strategy is likely in the near future.
Naseem Usman said that fine type, which is mostly from the Punjab managed to gain and hit at Rs 5200 but on the other hand, he said, cotton from Sindh could not attract the buyers due to poor quality because of floods and monsoon rains. In the meantime, some experts expressed the opinion that prices may show slight fluctuations due to easy supply position. Some brokers said that most of the buyers were interested in the fine quality mainly because of need to fulfil the export consignments.
The buyers, who were in search of best quality were trying to grab the every floating lot of fine type at the present rates owing to hovering uncertainties about the future direction of the market. The interesting thing is to note is that the present circumstances are purely in favour of growers and ginners, but how far it will last, just wait?
Reuters adds: On Friday, the US cotton futures closed flat, in the last trading session before the Christmas holiday. The key March cotton futures closed unchanged at 87.24 cents per lb, trading from 86.86 to 87.65 cents.
The following deals were reported: 400 bales from Mir Pur Khas sold at Rs 3700, 600 bales of cotton from Nawabshah at Rs 4300, 1000 bales of cotton from Khair Pur at Rs 4500/4600, 2000 bales of cotton from Upper Sindh at Rs 5000/5050, 1000 bales of cotton from Hasil Pur at Rs 4850/4900, 200 bales of cotton from Uch Sharif at Rs 4900, 400 bales of cotton from Layyah at Rs 5000, 200 bales of cotton from Ahmed Pur at Rs 5000, 200 bales of cotton from Mian Chanu at Rs 5000, 600 bales of cotton from Sadiqabad at Rs 5050, 400 bales of cotton from Rahim Yar Khan at Rs 5100, 600 bales of cotton from Shujabad at Rs 5100-5200, 200 bales of cotton from Bahawal Pur at Rs 5100, 600 bales of cotton from Dera Ghazi Khan at Rs 5175/5200, 400 bales of cotton from Rajan Pur at Rs 5200 and 600 bales of cotton from Mian Wali 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 23.12.2011
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37.324 Kgs 5,100 130 5,230 5,130 +100
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Equivalent
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40 Kgs 5,466 130 5,596 5,488 +108
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