Steady trend was seen on the cotton market on Saturday as daily-intake was slackened by the mills and spinners on hope of fall in the rates, dealers said. The official spot rate was unchanged at Rs 5,700, they said. Prices of seedcotton in Sindh were at Rs 1800-2300 and in the Punjab Rs 2200-2650, they said.
In ready dealings approximately 6,000 bales of cotton changed hands at Rs 5,300-6000, they added. Naseem Usman said that despite the continued decline in the NY cotton market, domestic cotton prices are nearly firm on expectations of low quality of cotton buying by the Indian importers. Indian delegation is in Pakistan these days, textile team is also among the 87-member team. India may not achieve desired cotton production target this factor may cause increased demand by visiting team, analysts said.
The other reason behind the stability of the rates is cautious attitude of the ginners as they don't want to sell unsold stock at the lower rates, instead they are keen to stay on the sidelines to observe latest developments, they said. During the last session, the ginners got panic after steep fall of over three cents per lb in NY cotton market but now it looks that the ginners maybe waiting for positive response by the Indian cotton importers, other experts said.
On Friday the NY cotton futures finished higher on trade and possible mill buying to off-set early pressure caused by a bearish government crop report handed out in the previous session, analysts said. Benchmark March cotton on ICE Futures US went up 0.23 cent to finish at 90.61 cents per lb, dealing from 89.99 to 91.46 cents, adds Reuters.
The following deals were reported: 400 bales of cotton from Dharki sold at Rs 6000, 400 bales of cotton from Vehari at Rs 5300, 600 bales of cotton from Faqir Wali at Rs 5300, 400 bales of cotton from Haroonabad at Rs 5300, 800 bales of cotton from Fort Abbas at Rs 5300/5400, 200 bales of cotton from Dhanot at Rs 5500, 400 bales of cotton from Ahmed Pur at Rs 5600, 600 bales of cotton from Mian Wwali at Rs 5800/5900, 600 bales of cotton from Shujabad at Rs 5950/6000, 1000 bales of cotton from Ali Pur at Rs 5950/6000, 1000 bales of cotton from Rahim Yar Khan at Rs 5900.
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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 10.02.2012
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37.324 Kgs 5,700 130 5,830 5,830 NIL
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Equivalent
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40 Kgs 6,109 130 6,239 6,239 NIL
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