Panic selling by ginners pushed the rates down on the cotton market on Wednesday in process of trading, dealers said. The Karachi Cotton Association (KCA) official spot rate was unchanged at Rs 6,300, they said. Prices of seedcotton in Sindh were down by Rs 100 to Rs 2200-2700 and rates in Punjab were at Rs 2300-2900, they said.
In ready dealings business activity showed improvement as about 22,000 bales of cotton changed hands between Rs 5,000-6,400, they added. According to the marker reports the ginners bring down the asking prices due to increase in phutti arrivals owing to this factor, the mills were preferring to purchase fine quality.
It is likely that the prices show soft trend in the local market due to downward trend in the NY cotton futures, they added. On Tuesday the NY cotton futures settled marginally easier in mostly spread trade as the market was content to stay in a narrow trading band, analysts said.
The key December cotton contract on ICE Futures US slipped 0.18 cent to end at $1.0018 per lb, trading from 99.61 cents to $1.0082. The market has traded in a band from 98 cents to $1.04 for 3-1/2 weeks. Total volume traded on Tuesday hit over 8,500 lots, more than a third under the 30-day norm, preliminary Thomson Reuters data showed.
The following deals were reported: 400 bales of cotton from Sultanabad sold at Rs 5000, 400 bales of cotton from Hala at Rs 5000, 400 bales of cotton from Mir Pur Khas at Rs 5500, 2000 bales of cotton from Khair Pur at Rs 6000-6100, 2000 bales of cotton from Upper Sindh at Rs 6000/6100, 200 bales of cotton from Duniapur at Rs 5900, 200 bales of cotton from Haroonabad at Rs 5950, 800 bales of cotton from Bahawal Nagar at Rs 6000/6100, 200 bales of cotton from Ahmed Pur at Rs 6100, 3000 bales of cotton from Bahawal Pur at Rs 6050/6100, 200 bales of cotton from Rinala Kurd at Rs 6150, 200 bales of cotton from Kehroor Pacca at Rs 6175, 600 bales of cotton from Rahim Yar Khan at Rs 6200, 200 bales of cotton from Muridwala at Rs 6200, 400 bales of cotton from Sadiqabad at Rs 6200, 1200 Khanewal at Rs 6200, 1600 bales of cotton from Burewala at Rs 6200/6250, 4000 bales of cotton from Rajan Pur at Rs 6300/6400, 1400 bales of cotton from Fazil Pur at Rs 6300/6400 and 400 bales of cotton from Mian Wali at Rs 6400.
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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 18.10.2011
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37.324 Kgs 6,300 130 6,430 6,430 NIL
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Equivalent
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40 Kgs 6,752 130 6,882 6,882 NIL
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