Cotton of new crop in small size has started reaching the market, as a result the leading mills and spinners were on sidelines expecting the fall in the rates, dealers said on the cotton market on Monday. The Karachi Cotton Association (KCA) official spot rate was retained at the weekend level of Rs 8,500, they said.
In Sindh prices of new phutti were quoted at Rs 3550-3600 and old phutti crop in Sindh and Punjab, the rates were of low type was at Rs 2500 and that of superior type at Rs 3000, they said. In ready business over 1300 bales of cotton changed hands between Rs 7950-9000, they added.
As a whole, general trend in the market was steady as prices almost retained the obtaining levels with slight fluctuations, other experts said. They said that the Punjab received rains in some cotton belt and this is good for the standing crop. Commenting on the present trend in the market they said that despite the fact that the mills needed over one million bales to meet their requirements, they preferred the sidelines, hoping for decline in the rates. Downward trend in the NY cotton market and news of exports of Indian cotton are the factors, which are propelling buyers to keep a watch over the market trend. In the meantime, most of the buyers are keen to know about the price trend in the international market, they said.
If prices are lower in the global market as compared to the local rates, they will buy the foreign stuff to save themselves from losses as they have been already under pressure due to high cost of doing business, they said. The following deals were reported: 467 bales of cotton from Mir Pur Khas sold at Rs 7950, 400 bales of cotton from Khair Pur at Rs 8500, same figure from same station at Rs 9000, and 100 bales from Haroonabad 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 10.06.2011
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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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