Tug-of-war between buyers and sellers slowed down business activity on the cotton market on Wednesday, dealers said. The official spot rate was inert Rs 5500, they added. Prices of seedcotton in Sindh at Rs 1800-2300, and in the Punjab rates were at Rs 2100-2700, they said. About, 2000 bales of cotton changed hands between Rs 4000-6000, they said.
Commenting on the subdued business, Naseem Usman said low stock of cotton caused slow business as ginners were not interested in cutting down the prices of fine type, so, some mills and spinners did buying to meet the short-term needs, they said. The exporters were also in the arena for the same purpose, made purchasing of good quality to meet the export obligations, he said. Other brokers said that delay in sowing due to unfavourable weather condition, is also a factor behind the steadier trend in the prices.
According to the Reuters, the NY cotton futures settled mixed on Tuesday as investors sifted through a US government crop report for clear signals, while the weak tone of both the grains and stock markets pressured back months, dealers said. The benchmark May cotton contract on the ICE Futures US exchange rose 0.25 cent to finish at 89.73 cents per lb, dealing from 89.34 to 90.90 cents. The rest of the board traded lower. Tuesday's estimated volume reached almost 53,600 lots, which would be the highest since November 15, 2011 when it hit 57,321 lots, ICE Futures US and Thomson Reuters data showed.
The following deals were reported: 200 bales of cotton from Saleh Pat at Rs 5800, 100 bales of cotton from Burewala (Low Quality) at Rs 4000, 200 bales of cotton from Mailsi (Low Quality) at Rs 4300, 200 bales of cotton fro Vehari at Rs 5500, 200 bales from Yazman Mandi at Rs 5500, 200 bales from Faqir Wali at Rs 5500, 200 bales from Shadan Lund at Rs 5500, 200 bales of cotton from Chichawatni at Rs 5525, 200 bales of cotton from Sahiwal at Rs 5850 and 200 of cotton from Dera Gazi Khan at Rs 6000, they said.
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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 10.04.2012
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37.324 Kgs 5,500 130 5,630 5,630 NIL
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Equivalent
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40 Kgs 5,894 130 6,024 6,024 NIL
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