Upward trend in the NY cotton futures, haunting the mills to continue cotton purchasing to keep themselves safe from future losses, dealers said. The Karachi Cotton Association (KCA) official spot rate was unchanged at Rs 6,250, they said. Prices of seedcotton in Sindh were unchanged at Rs 2300-2800 and rates in Punjab were at Rs 2400-3000, they said.
In ready dealings activity improved as approximately 16,000 bales of cotton changed hands between Rs 5,500-6,500, they added. Market sources said that continued rise in the New York market pushed up the rates in the local market as mills were ready to buy even above their psychological levels. The ginners on the other hand, preferred to sell at the present level owing the unprecedented increase in the phutti arrivals, Naseem Usman said.
Other brokers said that higher phutti arrivals pushed the rates lower during the last sessions because ginners were selling cotton amid fears of fall in prices and other factor which, provoke the ginners to sell cotton was speculation of higher cotton production despite damage to cotton crop in Sindh due to rains and floods.
On Friday the US cotton futures ended with small gains on trade buying as the market finished its third week within a trading band with no sign of a breakout next week, analysts said. The key December cotton contract on ICE Futures US rose 0.38 cent to end at $1.0194 per lb, trading from $1.0108 to $1.0365. The market has traded in a band from 98 cents to $1.04 for three weeks.
Total volume traded on Thursday in the cotton market reached 14,489 lots, against the prior tally of 18,352 lots, ICE futures US data showed. For the week, the market is barely changed from its close last week at $1.0198. Total volume on Friday was more than 9,900 lots, about a quarter under the 30-day norm, preliminary Thomson Reuters data showed.
The following deals were reported: 200 bales of cotton from Tando Adam sold at Rs 5500, 2000 bales of cotton from Khair Pur at Rs 6150-6200, 1000 bales of cotton from Upper Sindh at Rs 6150-6200, 200 bales of cotton from Kassowal at Rs 6300, 400 bales from Chichawatni at Rs 6300, 1600 bales from Khanewal at Rs 6400-6500, 200 bales from Shadan Lund at Rs 6400, 1000 bales from Rajan Pur at Rs 6400-6475, 600 bales from Mohammad Pur at Rs 6400, 1400 bales from Kabirwala at Rs 6400, 600 bales from Fazil Pur at Rs 6475, 800 bales from Lodhran at Rs 6200, 2000 bales from Rahim Yar Khan at Rs 6200-6300, 1000 bales from Khan Pur at Rs 6200, 2000 bales from Bahawal Pur at Rs 6200-6300 and 1200 bales from Burewala at Rs 6300-6400.
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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 14.10.2011
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37.324 Kgs 6,250 130 6,380 6,380 NIL
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Equivalent
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40 Kgs 6,698 130 6,828 6,828 NIL
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