Daily-intake by mills and spinners improved on the cotton market on Friday as the ginners cut down the asking prices of fine type mainly because of huge quantity of unsold stock, dealers said. The official spot rate was unchanged at Rs 5,500, they said.
Seedcotton prices in Sindh were at Rs 1800-2300 and in the Punjab at Rs 2200-2650, they said. In ready dealings approximately 9000 bales of cotton changed hands at Rs 4300-5700, they added. Commenting on the latest position, some experts said that mills covered the near-term needs after fading hopes for decline in the prices of cotton. They (mills and spinners) were expecting for further buying at lower rates, but prices showed only marginal fluctuations, they said.
Now it is very much clear that the ginners may show more flexibility towards rates, because leading buyers were not very active due to world recession and no one is ready to predict about the recovery in economies of the world. Business volume is still low as mills and spinners were not the aggressive buyers as they had been a month ago, they said.
According to the Reuters, on Thursday, the US cotton prices fell for a second day in the benchmark May contract on talk that China, the world's biggest buyer, may exit the market for a while. Benchmark May futures on ICE Futures US ended at 89.23 cents per lb, falling 1.30 cents or 1.44 percent. It moved to its lowest level since December 28 at 89.01 cents from a session high at 91.15 cents a lb. May volume came to 13,958 lots in late trade. March cotton settled at 87.48 cents, down 1.09 cents, or 1.23 percent. It was the lowest level since December 27. The range ran from 87.46 to 88.85 per lb.
The following deals were reported: 400 bales of cotton from Saleh Pat dold at Rs 5350, 400 bales of cotton from Khuzdar at Rs 5750, 600 bales from Sanghar at Rs 4000-4300, 400 bales of cotton from Tando Adam at Rs 4000-4300, 400 bales from Mir Pur Khas at Rs 4000-4300, 1000 bales of cotton from Faqir Wali at Rs 5250, 1000 bales of cotton from Fort Abbas at Rs 5250-5300, 400 bales from Kotla Moosa at Rs 5400, 200 bales from Dunia Pur at Rs 5400, 400 bales from Bahawal Pur at Rs 5400, 400 bales from Karor Pakka at Rs 5500, 600 bales from Sadiqabad at Rs 5600-5650, 400 bales from Rahim Yar Khan at Rs 5600-5650, 600 bales from Mian Wali at Rs 5600-5700, 400 bales from Basti Malook at Rs 5650, 400 bales of cotton from Head Bakani at Rs 5700 and 200 bales from Tonsa Sharif 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 23.02.2012
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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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