Spot rate lowered to Rs 5,700 amid modest business on cotton market
Spot rate was slashed on the cotton market on Tuesday amid modest trading, dealers said. The official spot rate was lowered by Rs 100 to Rs 5,700, they said. Prices of seedcotton in Sindh were at Rs 1800-2450 and in the Punjab at Rs 2000-2750, they said. In ready dealings about 14,000 bales of cotton changed hands at Rs 5,200-6000, they added.
According to market sources meeting of the Economic Co-ordination Committee (ECC) held on Tuesday as usual the Pakistan Cotton Ginners Association (PCGA) in the discussion repeated its demand for the fixation of support price at Rs 6500, but on the other hand, it came up that the All Pakistan Textile Mills Association (APTMA) has opposed the government intervention as it called the move would be against the market mechanism.
It looks that the ginners may not lower the asking prices and may cause slight stability in the rates in the coming days, they said. On Monday the NY cotton futures finished with hefty losses, caught in the downdraft of selling that pulled most other commodities lower with the euro as Greece appeared unlikely to reach a deal to restructure private-sector debt.
Benchmark March cotton on ICE Futures US slid 1.46 cents, or 1.53 percent, to end at 94.15 cents per lb, and set a range between 94.11 to 96.30. Selling was heavy. Volume in the March contract was 13,422 by the end. Nevertheless, support was in place with a double-bottom that formed with the January 12 low, suggesting prices were unlikely to keep falling in the short term.
The following deals were reported: 600 bales of cotton from Saleh Pat sold at Rs 5725/5750, 1400 bales of cotton from Bahawal Nagar at Rs 5200/5400, 200 bales of cotton from Bahawal Pur at Rs 5475, 1800 bales of cotton from Hasil Pur at Rs 5500/5550, 400 bales of cotton from Layyah at Rs 5600, 1800 bales of cotton from Fort Abbas at Rs 5600/5650, 400 bales of cotton from Vehari at Rs 5700, 400 bales of cotton from Khan Pur at Rs 5700, 200 bales of cotton from Dera Ghazi Khan at Rs 5800, 200 bales of cotton from Mian Wali at Rs 5800, 400 bales of cotton from Rahim Yar Khan at Rs 5800, 400 bales of cotton from Head Bakani at Rs 5800, 200 bales of cotton from Kabbir Wala at Rs 5800, 600 bales of cotton from Shadan Lund at Rs 5800, 400 bales of cotton from Lodhran at Rs 5825, 1000 bales of cotton from Ahmed Pur at Rs 5900, 1800 bales of cotton from Rajan Pur at Rs 5900, 400 bales of cotton from Burewala at Rs 5900, 400 bales of cotton from Shujabad at Rs 6000.
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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 28.01.2012
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37.324 Kgs 5,700 130 5,830 5,930 -100
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Equivalent
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40 Kgs 6,109 130 6,239 6,346 -107
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