Unavailability of transport reduces business activity on cotton market
In the absence of availability of proper transport buyers were not able to finalise the desired deals on the cotton market on Saturday, dealers said. The Karachi Cotton Association (KCA) official spot rate was maintained at overnight level of Rs 5,750, they said.
Prices of seedcotton in Sindh were unchanged at Rs 2200-2700 and rates in Punjab also followed same pattern, showing no change in the overnight levels at Rs 2400-2800, they said. In ready dealings about 12,000 bales of cotton changed hands between Rs 5,400-6,100, they added.
Trading activity was down as transport owners were charging double rates for their vehicles because animals' owners were busy in shifting from their destinations to sell the sacrificial animals on the occasion of Eid-ul-Azha. Other analysts said that many mills and spinners covered the forward buying as they were informed that they will face difficulty because transport problems. It is interesting to see that under the circumstances how the local market reacts to the global market trend in the near future?
Some of the market players were of the view that exports are showing betterment and it is likely that contamination-free products may help in achieving the textile target for the current season. On Friday the NY cotton futures ended fractionally higher, rising for the sixth straight session as players mulled Europe's initiatives to tackle its regional debt crisis, analysts said.
The key December cotton contract on ICE Futures US added 0.05 cent to close at $1.0437 per lb, dealing from $1.0259 to $1.0505. It was the highest settlement for spot cotton in six weeks. Total volume traded on Friday hit over 23,300 lots, some two-thirds over the 30-day norm, preliminary Thomson Reuters data showed.
The following deals were reported: 200 bales of cotton from Shahdad Pur at Rs 4500, 200 bales from Nawab Shah at Rs 4800, 1000 bales from Khair Pur at Rs 5300-5700, 1000 bales of cotton from Upper Sindh at Rs 5700-5800, 1000 bales from Fort Abbas at Rs 5650-5675, 200 bales from Vehari at Rs 5675, 1000 bales from Khanewal at Rs 5800-6000, 200 bales from Geley Wal at Rs 5700, 200 bales from Bhawana at Rs 5700, 400 bales from Multan at Rs 5700, 1000 bales from Bahawal Pur at Rs 5700, 200 bales from Bakkhar at Rs 5800, 400 bales from Uch Sharif at Rs 5800, 400 bales from Sillan Wali at Rs 5800/5825, 1000 bales from Rajan Pur at Rs 5800/5900, 800 bales from Burewala at Rs 5800/5900, 200 bales from Gajjo Mandi at Rs 5800, 200 bales from Ghazi Ghat at Rs 5825, 400 bales from Khan Pur at Rs 5850, 800 bales from Layyah at Rs 5900, 200 bales from Rahim Yar Khan at Rs 5900 and 400 bales from Mian Wali at Rs 6100.
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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 28.10.2011
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37.324 Kgs 5,750 130 5,880 5,880 NIL
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Equivalent
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40 Kgs 6,162 130 6,292 6,292 NIL
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