Spot rate was higher on the cotton market on Thursday due to tight supply of fine quality, dealers said. As a result, the official spot rate was raised by Rs 100 to Rs 6000, they said. In the ready business over 3000 bales of cotton changed hands between Rs 5800-6500, they said. The prices of seedscotton from Sindh per 40kg were at Rs 2900-3000 and in Punjab, rates were at Rs 2700-2800, they said.
Some brokers said that prices were firm as mills were active in the early session but in afternoon, prices slipped modestly following the sharp decline in the NY cotton futures. Naseem Usman said that the prices may show softness in the coming days as locally the mills are not too much interested in low quality because variety of fresh arrivals were not meeting with their psychological levels.
But it looks that ginners may not lower the asking price of better quality, they added. The country is facing shortage of fine quality, so Indian cotton have started reaching the local market, analysts said. According to Reuters, the NY cotton futures closed sharply lower on Wednesday on investor liquidation as the market fell back from the one-month high it hit in the previous session as the short play in the July contract appears to have come to an end, brokers said.
The spot July cotton contract on the ICE Futures US exchange dropped 4.81 cents, or 5.4 percent, to end at 83.17 cents per lb, moving from 82.98 to 89.48 cents. On Tuesday, the contract rose to the five cent daily limit to settle at 87.98 cents the highest close for the spot contract since the middle of May, Thomson Reuters data showed. Key December fell 1.72 cents, or 2.3 percent, to finish at 72.71 cents per lb, dealing from 71.06 to 74.50 cents. Volume traded on Wednesday stood near 28,100 lots, some 15 percent above the 30-day norm, Thomson Reuters data showed.
The following deals were reported: 200 bales of cotton from Arif Wala sold at Rs 5800, same figure from Lodhran sold at Rs 6000, 400 bales of cotton from Vehari at Rs 6200, 200 bales of cotton from Liaquat Pur at the same rate, 200 bales from Fort Abbas at Rs 6400, 400 bales of cotton from Sadiqabad at Rs 6500 and 1000 bales of cotton from Rahim Yar Khan at the same rate.
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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 20.06.2012
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37.324 Kgs 6,000 130 6,130 6,030 +100
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Equivalent
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40 Kgs 6,430 130 6,560 6,453 +107
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