Official spot rates raised by Rs 100 as mills and exporters continued buying to meet their requirements, dealers said on cotton market on Wednesday. The official spot rate was higher by Rs 100 to Rs 5,800, they said. Prices of seedcotton in Sindh were at Rs 1800-2400 and in the Punjab rates were at Rs 2000-2700, they said.
In ready dealings, trading activity improved, resulting approximately 14,000 bales of cotton changed hands at Rs 4,600-6000, they said. According to the market sources, exporters were busy in purchasing of both low and fine types of cotton to meet the export obligations, on the other hand, mills also took part in finalising the deals for good quality of cotton.
Expectations for improvement in business activity in the coming days are playing a major role after European Union (EU) package to boost country's textile exports so it looks that prices may not fall sharply from the current levels, they said. Some experts were of the view that the country may achieve 15 million bales of cotton for the current year, this factor may help in minimise size of the import of cotton from other countries.
On Tuesday, the NY cotton futures settled sharply lower, mainly due to spread trade as investment funds began moving their positions in the market out of the spot month and into the back contracts, analysts said. Benchmark March cotton on ICE Futures US declined 1.74 cents, or almost 2 percent, to finish at 94.57 cents per lb, dealing from 94.35 to 96.93 cents.
The following deals were reported: 200 bales of cotton from Mir Pur Khas at Rs 4600, 200 bales of cotton from Hyderabad at Rs 4600, 200 bales of cotton from Kotri at Rs 4600, 400 bales of cotton from Khadro at Rs 4600, 800 bales of cotton from Shahdad Pur at Rs 4600, 200 bales of cotton from Faqir Wali at Rs 5250, 200 bales of cotton from Haroonabad at Rs 5250, 1000 bales of cotton from Darran Wala at Rs 5250, 100 bales of cotton from Bahawal Pur at Rs 5500, 1000 bales of cotton from Fort Abbas at Rs 5575/5750, 200 bales of cotton from Ahmed Pur 5600, 800 bales of cotton from Lodhran at Rs 5600/5800, 200 bales of cotton from Uch Sharif at Rs 5700, 2400 bales of cotton from Sadiqabad at Rs 5750/6000, 1000 bales of cotton from Chichawatni at Rs 5800, 2400 bales of cotton from Bakkhar at Rs 5850, 1000 bales of cotton from Rahim Yar Khan at Rs 5900-6000, 600 bales of cotton from Khanewal bales of cotton from 6000, 400 bales of cotton from Yazman Mandi at Rs 6000, 400 bales of cotton from Bahawal Pur at Rs 6000, they said.
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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 07.02.2012
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37.324 Kgs 5,800 130 5,930 5,830 + 100
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Equivalent
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40 Kgs 6,216 130 6,346 6,239 + 107
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