Not a single deal was reported on the cotton market on Saturday as there were sellers but no buyers, dealers said. The official spot rate was unchanged at Rs 3200, they said. The phutti prices in both the Punjab and Sindh were at Rs 1550-1650, they added.
Political instability caused chaos among both buyers and sellers as under the uncertain conditions sellers are trying to sell the unsold stock even lowering the prices but buyers were not ready to come forward, mainly in anticipation of downward trend in the rates, they added.
Presently, the country is facing double crisis as a result of rising fears about the settlement of the judges and several other issues and hovering doubts over the world recession, all these factors are shrinking business activity in the country.
At the weekend, the NY cotton futures settled mixed in two-way investor business and analysts said fibre contracts will rely on the equity and energy markets for direction on its next move.
The key May cotton contract ended flat at 42.83 cents per lb, trading from 42.15 to 43.44 cents. July eased 0.10 cent to 43.86 cents. Volume traded in the May contract was at 8,343 lots at 2:40 pm EDT (1840 GMT). Apart from other issues, transportation problem was the main concern following the street protests in the country, no deal was reported at the weekend, dealers 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"
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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37.324 Kgs 3,200.00 100 3,300.00
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Equivalent
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40 Kgs 3,429.00 100 3,529.00
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