Fresh buying interest of cotton yarn after a long time caused improvement in business activity on the cotton market on Wednesday, dealers said. The Karachi Cotton Association (KCA) official spot rate was unchanged at Rs 8,500, they said.
In Sindh and Punjab phutty price of low type was at Rs 2500 and that of superior type at Rs 3000, they said.
In ready business more than 7,000 bales of cotton changed hands between Rs 7500-8600, they added.
Some brokers said that revival of buying interest of cotton yarn caused increase in the business activity as mills showed new interest in the buying but most of them are trying to get at the lower rates.
In the meantime, the ginners, who were hoping for huge profit as a result of higher rates due to short supply, now are puzzled and trying to understand the development ahead of budget 2011-12, announcement which is expected on June 3, 2011, analysts said.
Other brokers said that cotton traders were also discussing the levy of sales taxes but on the other hand, most of them were looking optimistic about some concessions for the textile sector.
On Tuesday the US cotton futures finished at a four-week high on investor buying as a historic drought did not let up in the key growing state of Texas during the long holiday weekend, brokers said.
The cotton market was closed on Monday for US Memorial Day. The benchmark December cotton futures on ICE Futures US went up the six-cent limit to finish at $1.355 per lb, with the day's low at $1.30. It was the highest settlement for the third-position cotton contract since May 4. Based on that third-position contract, cotton posted a gain of 3.49 percent in the month of May. Spot July cotton also went up the six-cent limit to close at $1.5867.
The following deals were reported: 747 bales of cotton from Sanghar sold at Rs 7700, 680 bales of cotton from Sanghar at Rs 7700, 1670 bales of cotton from Sanghar at Rs 7500, 380 bales from Sanghar at Rs 7500, 200 bales from Ghotki at Rs 8200, 600 bales (exporter to mill) at Rs 8500, 104 bales from Hasil Pur at Rs 7700, 650 bales from Dera Ghazi Khan at Rs 8000, 100 bales from Qaboola at Rs 8600, 200 bales from Hasil Pur at Rs 8300, 1071 bales from Gellwala at s 8500, 200 bales from Sadiqabad at Rs 8500, 200 bales from Duniya Pur at Rs 8500, 200 bales from Kabbirwala at Rs 8300 and 400 bales from Khan Pur at Rs 8600.
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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 31.05.2011
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37.324 Kgs 8,500 120 8,620 8,620 NIL
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Equivalent
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40 Kgs 9,109 120 9,229 9,229 NIL
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