Modest trading activity was seen on the cotton market on Tuesday as ginners and mills failed to come at a meeting ground, dealers said. The Karachi Cotton Association (KCA) spot rate was unchanged at Rs 9000. Seed cotton prices in Sindh and Punjab did not show any change in weekend levels at Rs 3,900-4,200, they said.
In ready business approximately 7,000 bales of cotton changed hand between Rs 9000-9400, they added. Market sources said that the mills were on the sidelines due to higher prices and on the other hand ginners were looking in commanding position because they were not lowering the asking prices due to short crop.
Higher prices in the international market and less production of cotton causing uncertainties among the cotton circles, they don't have any idea as to what is next direction of the market in the absence of guiding factor, they said. They also said that traders looking at the NY cotton futures tract local market may take the same direction or adopt it's own pattern.
On Monday the US cotton futures finished lower on light follow-through investor sales and news of an interest rate rise in top consumer China, analysts said. The market may see further choppy trade in the last trading week of 2010 as most large investors have already closed their books and will not return until after the New Year. The cotton market on ICE Futures US was closed last Friday for Christmas. The key March cotton contract dropped 2.36 cents to end at $1.4576 per lb on volume of around 13,000 lots, which is about half the 30-day average, Thomson Reuters preliminary data showed.
The following deals were reported: 400 bales of cotton from Shahdad Pur sold at Rs 9000, 400 bales of cotton from Nawabshah at Rs 9000, 600 bales of cotton from Khair Pur at Rs 9300, 1000 bales of cotton from Upper Sindh at Rs 9200-9400, 400 bales of cotton from Kabirwala at Rs 9300, 200 bales of cotton from Liyyah at Rs 9300, 400 bales of cotton from Khanewal at Rs 9300, 400 bales of cotton from Khan Pur at Rs 9300, 800 bales of cotton from Rahim Yar Khan at Rs 9200-9300, 200 bales of cotton from Bahawal Pur at Rs 9000, 200 bales of cotton from Gaggo Mandi at Rs 9000, 200 bales of cotton from Hasil Pur at Rs 8900, 200 bales of cotton from Arifwala at Rs 9000 and 200 bales of cotton from Burewala at Rs 9000.
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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 27.12.2010
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37.324 Kgs 9,000 120 9,120 9,120 NIL
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Equivalent
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40 Kgs 9,645 120 9,765 9,765 Nil
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