Steady trend was again witnessed on the cotton market on Tuesday as leading buyers were conspicuous by their absence, dealers said. The official spot rate was unchanged at Rs 5,500, they said. Prices of seedcotton in Sindh were at Rs 1800-2300 and in the Punjab at Rs 2200-2650, they said. In ready dealings over 5000 bales of cotton changed hands at Rs 3950-5800, they added.
Market sources said that despite all-time high production in the country, the mills and spinners could not make forward deals due to falling demand in the international market and partly because of financial problem. The ginners, who were expecting sharp rising the prices, showed slight flexibility by cutting down prices but the buyers were not ready to oblige them owing to their own problems, they said.
It was reported that buying interest by China improved but despite that market participants looked confused due to gloomy picture of the world economy, other analysts said. Commenting on the exports they said that the country's exports will show positive trend as foreign countries were importing low type of cotton to meet their local demand. The US markets were closed on Monday for holiday.
The following deals were reported: 400 bales of cotton from Tando Adam sold at Rs 4300, 400 bales of cotton from Ghotki at Rs 5575, 600 bales from Chichawatni (Low Quality) at Rs 3950, 200 bales from Pak Pattan at Rs 5000, 200 bales from Bhakkar at Rs 5200, 200 bales of cotton from Dahran Wala at Rs 5200, 400 bales of cotton from Bahawal Pur at Rs 5250, 200 bales from Chistian at Rs 5300, 400 bales from Fort Abbas at Rs 5300, 200 bales from Murid Wala at Rs 5300, 400 bales from Basti Mallok at Rs 5500, 400 bales from Shah Jamal at Rs 5700, 1000 bales of cotton from Rahim Yar Khan at Rs 5700-5800 and 600 bales of cotton from Sadiqabad at Rs 5775/5800.
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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 20.02.2012
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37.324 Kgs 5,500 130 5,630 5,630 NIL
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Equivalent
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40 Kgs 5,894 130 6,024 6,024 NIL
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