Trading activity slowed down on cotton market on Saturday ahead of the Eid-ul-Azha holidays, dealers said. The official spot rate was unchanged at Rs 4100, brokers said. In the ready business nearly 22,000 bales of cotton changed hands between Rs 4050-4200. Phutti prices were same in both Sindh and the Punjab at Rs 2000-2200, they added.
According to the market sources, business was thin due to transportation problems, as most of the trucks were booked for delivery of sacrificial animals. In the meantime, the leading mills and exporters were busy in forward buying of cotton yarn despite the expectations of better cotton production against the last year, some analysts said.
They said that before holidays, it appeared that both buyers and sellers became lethargic so we can expect little volume, the normal activity may resume after holidays. On Friday the NY cotton futures settled near a 16-month high on investment fund buying and the momentum from the rally could push fiber contracts higher into next week, brokers said.
The spot December cotton contract climbed 1.59 cents to settle at 70.41 cents per lb, trading from 68.95 to 70.92 cents. On the spot daily charts, it was the highest close for cotton since the end of July 2008. December contract volume reached 6,815 lots at 2:50 pm EST (1950 GMT). Most active and now benchmark March cotton added 1.07 cents to close at 74.04 cents, moving between 72.97 and 74.19 cents.
THE FOLLOWING DEALS WERE REPORTED: 3000 bales of cotton from Shahdadpur sold at Rs 4050, 600 bales from Tando Adam at Rs 4050, 800 bales from Sanghar at Rs 4050, 3000 bales from Nawabshah at Rs 4050 -4100, 600 bales from Khan Pur 4100, 1000 bales from upper Sindh at Rs 4200, 4000 bales from Rahim Yar Khan at Rs 4200, 1000 bales from Rajan Pur at Rs 4200, 600 bales from Sadiqabad at Rs 4150, 400 bales from Burewala at Rs 4150, 800 bales from Gago at Rs 4125, 400 bales from Fort Abbas at Rs 4200, 2000 bales from Jahan Pur at Rs 4050 and 200 bales from Bakhar at Rs 4125.
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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 4,100.00 100 4,200.00
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Equivalent
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40 Kgs 4,394.00 100 4,494.00
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