Volume of business rises as forward buying continues; spot rate slashed by Rs 200 on cotton market
Pre-holiday and forward buying continues on the cotton market on Tuesday as mills and spinners both indulged in excessive purchasing as growers and ginners were ready to oblige them, dealers said. The Karachi Cotton Association (KCA) official spot rate was lowered sharply, by Rs 200 to Rs 5,550, they said.
Prices of seedcotton in Sindh were unchanged at Rs 2000-2600 and rates in Punjab also followed same pattern, showing no change at Rs 2200-2700, they said. In ready dealings, about 20,000 bales of cotton changed hands between Rs 4,200-5,700, they added. It was surprising to note that the mills and spinners continued buying despite the delivery problems, dealers said. On the other hand, the growers and ginners did not wait for rise in the rates in the coming days, they added.
On Monday the US cotton futures closed lower on month-end liquidation and profit-taking as the market eased for the first time in seven sessions and may consolidate after its recent surge, analysts said. The key December cotton contract on ICE Futures US dropped 2.08 cents or almost two percent to finish at $1.0229 per lb, moving from $1.0114 to $1.0464.
On Friday, the contract ended at $1.0437 in the highest settlement close for spot cotton in six weeks. For the month, the spot cotton market was up 2.1 percent. Total volume traded on Monday hit over 13,200 lots, about 10 below the 30-day norm, preliminary Thomson Reuters data showed.
The following deals were reported: 800 bales of cotton from Mir Pur Khas at Rs 4200/4800, 200 bales of cotton from Hala at Rs 4200, 400 bales of cotton from Shahdad Pur at Rs 4700/4850, 200 bales of cotton from Nawabshah at Rs 4740, 200 bales of cotton from Sanghar at Rs 4850, 1000 bales of cotton from Khair Pur at Rs 5200/5550, 1000 bales of cotton from Upper Sindh at Rs 5500/5600, 1000 bales of cotton from Fort Abbas at Rs 5200/5450, 600 bales of cotton from Mian Channu at Rs 5200/5400, 1000 bales of cotton from Hasil Pur at Rs 5250/5275, 600 bales of cotton from Faqir Wali at Rs 5300/5400, 1000 bales of cotton from Vehari at Rs 5300/5500, 400 bales from Shujabad at Rs 5300/5400, 600 bales from Lodhran at Rs 5300/5400, 1600 bales of cotton from Haroonabad at Rs 5300/5400, 600 bales of cotton from Chishtian at Rs 5300, 400 bales of cotton from Bahawal Nagar at Rs 5350, ?200 bales of cotton from Basti Malook at Rs 5400, 200 bales of cotton from Pul Bagarh at Rs 5400, 1000 bales of cotton from Dera Ghazi Khan at Rs 5400, 400 bales of cotton from Dunia Pur at Rs 5400, 200 bales of cotton from Multan at Rs 5400, 200 bales of cotton from Jahanian at Rs 5400, 1000 bales of cotton from Burewala at Rs 5400/5500, 400 bales of cotton from Chichawatni at Rs 5500, 200 bales of cotton from Rahim Yar Khan at Rs 5500, 200 bales of cotton from Ali Pur at Rs 5500, 1000 bales of cotton from Khanewal at Rs 5500/5550, 2000 bales of cotton from Fazil Pur at Rs 5500, 400 bales of cotton from Ahmed Pur at Rs 5500, 600 bales of cotton from Gajjo Mandi at Rs 5500, 400 bales of cotton from Sillanwali at Rs 5650, 200 bales of cotton from Mian Wali at Rs 5700.
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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 31.10.2011
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37.324 Kgs 5,550 130 5,680 5,880 -200
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Equivalent
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40 Kgs 5,948 130 6,078 6,292 -214
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