Exporters' buying helped the cotton rates to keep firmness on the local market on Saturday in process of trading, dealers said. The Karachi Cotton Association (KCA) official spot rate was unchanged at Rs 5,450, they said. Prices of seedcotton of both low and best types in Sindh were higher by Rs 100 to Rs 1900-2500 and rates in Punjab were followed the same pattern, gaining Rs 100-200 to Rs 2300-2700, they said.
In ready dealings about 22,000 bales of cotton changed hands at Rs 4,200-5,700, they added. According to the market sources, Cargill bought nearly 4000-5000 bales of cotton and other exporters were also active to cover the forward buying.
It came under observation that spinners and mills showed fresh interest in buying but the ginners were reluctant in selling at the present levels, which also boosted the prices, other analysts said. As a result of which, mills' daily off-take came down during the last sessions, they added. Additionally, the Trading Corporation of Pakistan (TCP) sent SOS to the government as the growers were not getting better returns against the cost of production, they said.
In the meantime, prices of fine types did not fall sharply and may show further improvement in the coming days, they said. On Friday the US cotton futures settled a shade lower after being dominated by position-squaring indicating demand for nearby cotton supplies, traders said. "It was a remarkably uneventful day, except that the December cotton contract went up over March, after being initially down earlier this week," said Mike Stevens, an independent cotton analyst in Mandeville, Louisiana.
The following deals were reported: 800 bales of cotton from Tando Adam sold at Rs 4200-4300, 1200 bales of cotton from Nawabshah at Rs 4600, 400 bales of cotton from Noshehro Feroz at Rs 4850, 400 bales of cotton from Dadu at Rs 4900-4950, 2000 bales of cotton from Khair Pur at Rs 5000-5100, 2000 bales of cotton from Upper Sindh at Rs 5400, 800 bales of cotton from Khuzdar at Rs 5500, 400 bales of cotton from Sahiwal at Rs 5300, 400 bales of cotton from Faqeer Wali at Rs 5300, 2000 bales of cotton from Bahawal Pur at Rs 5400-5500, 400 bales of cotton from Khan Bela at Rs 5500, 400 bales of cotton from Jam Pur at Rs 5500, 800 bales of cotton from Chichawatni at Rs 5500, 1600 bales of cotton from Sadiqabad at Rs 5500, 400 bales of cotton from Tandlian at Rs 5500, 400 bales of cotton from Haroonabad at Rs 5500, 400 bales of cotton from Vehari at Rs 5500, 400 bales of cotton from Ali Pur at Rs 5500, 1200 bales of cotton from Fazil Pur at Rs 5500-5600, 400 bales of cotton from Khanewal at Rs 5600, 1000 bales of cotton from Lodhran at Rs 5600, 2000 bales of cotton from Rahim Yar Khan 5600 and 1000 bales of cotton from Mian Wali at Rs 5700.
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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 11.11.2011
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37.324 Kgs 5,450 130 5,580 5,580 NIL
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Equivalent
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40 Kgs 5,841 130 5,971 5,971 NIL
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