Subdued business was seen on the cotton market on Saturday as mills and spinners were expecting further decline in the rates after phutti arrivals, which were likely from next week, dealers said. Official spot rate was unchanged at Rs 5,600, they added. In ready business, around 700 bales of cotton changed hands between Rs 5650-5800, they said.
Naseem Usman said that fresh rain in cotton growing areas of Punjab are good for the standing crop because we can hope that rains are beneficial for the production. He further said that Phutti arrivals from Sindh may start in middle of June and from Punjab, seeds-cotton arrivals are expected in July. Despite the fact that there were some irrigation water problems, the cotton production will be good as the country may achieve 16 million bales of cotton for the next season, other experts said.
According to the Reuters, US cotton futures finished lower on Friday, caught in broad commodity market selling, but also as buyers who had driven prices up to their trading limit in the last two days reviewed some bearish fundamentals to rethink their strategies. Benchmark December cotton on ICE Futures US slipped 2.4 cents, or 3.32 percent, to end at 69.88 cents per lb. The trading range spanned 68.70 to 71.97 cents per lb. December's contract volume was large at 29,367 lots, due in part to rollovers into December futures and out of July. Spot July cotton closed at 72.90 cents a lb, down 99 cent, or 1.34 percent, on robust volume of 25,739 lots. The following deals were reported; 100 bales of cotton from Multan sold at Rs 5650, 200 bales of cotton from Vehari at Rs 5725 same figure from yazman Mandi at Rs 5800 and same number from Chistian at the same rate, they added.
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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 08.06.2012
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37.324 Kgs 5,600 130 5,730 5,730 NIL
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Equivalent
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40 Kgs 6,002 130 6,132 6,132 NIL
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