Selling pressure pulls down cotton prices

Selling pressure pulled the prices lower on the cotton market on Saturday, dealers said. The Karachi Cotton Association (KCA) official spot rate was down by Rs 35 to Rs 2425, without upcountry expenses. Seed-cotton was trading at Rs 1100-1125 in Sindh and at Rs 1125-1150 in Punjab, they said.
Yarn prices also were on the downside losing Rs 5-10 for per bundle, they said. Some dealers said the cotton prices fell due to good arrivals of phutti and expectation is if the Trading Corporation of Pakistan (TCP) did not intervene, the prices may continue declining. The mills were availing the chance and buying cotton prevailing rates, they said. The ginners were trying their best to dispose off the unsold stock as much as they can and at the best price the market can offer. They were anticipating more loses in near future.
The New York cotton market was down as the New York Board of Trade's December cotton contract fell 0.60 cent to close at 49.09 cents per lb, dealing from 49.69 to a new lifetime low of 49 cents. March lost 0.73 to 52.51 cents. The rest slid 0.40 to 0.90 cent.
The following deals were reported: 1000 bales of cotton from Mirpurkhas sold at 2425, 1200 bales from Shahdadpur at 2440/2450, 1000 bales from Tandoadam at Rs 2425/2430, 1000 bales from Sanghar at 2400/2410, 800 bales from Khipro at 2400/2420, 400 bales from Bhawalpur at Rs 2475, 200 bales from Rajanpur at Rs 2475, 3400 bales from Bahalpur at Rs 2450, 600 bales from Arifwala at Rs 2440/2450, 200 bales from Chichawatni at Rs 2450, 400 bales from Mamo Kanjan at Rs 2450, 200 bales from Hyderabad at Rs 2450, 200 from bales from Sadiqabad at Rs 2440, 200 bales from Rahimyar Khan at Rs 2440, 200 bales from Gojra at Rs 2450, 200 balesfrom Mongi at Rs 2450, 1000 bales from Bhawalnagar at 2450, 200 bales from Lodhran at Rs 2475, 400 bales from Vehari at Rs 2450, 200 bales from Depalpur at Rs 2470, 200 bales from Gajjo at Rs 2435 and 200 bales from Dera Gazi Khan at Rs 2440.

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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"

 MICRONAIRE VALUE BETWEEN 3.8 TO 4.9 NCL

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Rate           Ex-Gin     Upcountry    Spot Rate Ex-Karachi

for            Price                        Sales Tax @ 15%

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37.32 Kgs      2425.00        50                    2475.00

Equivalent-------------------------------------------------

40 Kgs         2599.00        50                    2649.00

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