Spot rate was up slightly on the cotton market on Friday as most of the buyers kept on the sidelines in process of trading, dealers said. The official spot rate was raised by the Karachi Cotton Association (KCA) by Rs 50 to Rs 5,250, they said. Prices of seedcotton in Sindh were at Rs 1700-2300 and in the Punjab at Rs 1800-2600, they said.
In ready dealings, daily-intake by the mills and spinners came down as 3000 bales of cotton changed hands at Rs 5000-5700, they added. Market sources said that in the absence of motivating factors, some of mills and spinners were not active, just trying to finalise the deal at the lower rates.
They said that in the absence major demand, the ginners were fed up but did not cut down prices sharply in expectations of emergence of demand from exporters. On Thursday the NY cotton futures ended higher due to investor demand and stronger outside markets, but lingering fears about the economic outlook kept the advance on a tight leash, analysts said.
The benchmark May contract on ICE Futures US rose 0.20 cent to finish at 87.34 cents per lb, dealing from 87.07 to 88.26 cents. It was an inside day within Wednesday's 87.05 to 88.59 cents band. Volume traded on Thursday came to over 16,500 lots, almost a third under the 30-day norm, Thomson Reuters data showed.
The following deals were reported: 400 bales of cotton from Mir Pur Khas (on creadit) at Rs 5000, 200 bales of cotton from Ghotki at Rs 5590, 400 bales of cotton from Faquir Wali at Rs 5150, 400 bales of cotton from fort Abbas at Rs 5200, 200 bales from Dunia Pur at Rs 5250, 200 bales from Hasil Pur at Rs 5385, 700 bales of cotton from Sadiqabad at Rs 5400 and same figure from Dera Ghazi Khan sold at Rs 5700.
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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 15.03.2012
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37.324 Kgs 5,250 130 5,380 5,330 +50
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Equivalent
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40 Kgs 5,626 130 5,756 5,703 +53
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