Prices were higher on the cotton market on Tuesday as the ginners started hoarding seedcotton (phutti) on expectations of better return in the coming days, dealers said on the cotton market on Monday. Official spot rate maintained overnight level at Rs 5,850, they said. Approximately, 17,000 bales of cotton changed hands between Rs 5700-6200, they said.
Prices of seedcotton (phutti) in Sindh low type gained Rs 50 to Rs 2650, but low type was unchanged at Rs 2900, while, in Punjab rates were inert at Rs 2700-3000, they said. Cotton analyst, commenting on the low volume of business, Naseem Usman said that to increase their return, the ginners were trying to stock unsold seedcotton, whether they can get the purpose or not, it is before time to guess about the matter, but one thing is clear that trading activity slowed down these days.
Other brokers said that in the meantime, the mills were preferring to import instead of purchasing of local seedcotton. According to the Reuters, the US cotton futures rose 1.8 percent on Monday for their biggest one-day gain in almost a month as technical buy signals and merchant interest more than offset concerns about weakening supply-and-demand fundamentals.
Early in the session, prices bolted up nearly 2 cents, or more than 3 percent, to a two-week high of 71.69 cents per lb as buy stops were triggered after last week's rout. "Buy stops and/or outright buying occurred above 70.30 cents, the average high of the past three days," said Sharon Johnson, senior cotton specialist at Knight Futures. The most-active December cotton contract on ICE Futures US stabilised later in the session settling 1.9 percent higher at 70.88 cents.
Following deals report: 2000 bales of cotton from Shahdadpur at Rs 5700-5900, 1200 bales from Tando Adam at Rs 5700-5800, 1000 bales from Sanghar at Rs 5700/5800, 1600 bales from Mir Pur Khas at Rs 5700/5800, 2000 bales from Khairpur at Rs 6000/6100, 200 bales from Tonsa Sharif at Rs 6000/6080, 800 bales from Bahawalpur at Rs 6000, 400 bales from Yazman Mandi at Rs 6000, 200 bales from Daranwala at Rs 6000, 400 bales from Shujabad at Rs 6000, 400 bales from Alipur at Rs 6000, 1200 Hasilpur at Rs 6025-6100, 1800 Haroonabad at Rs 6050/6075, 400 bales from Faqirwali at Rs 6075, 400 bales from Shadan Lund at Rs 6100, 800 bales from Fort Abbas at Rs 6100, 800 bales from Fazilpur at Rs 6150 and 1400 bales from Rajanpur at Rs 6200, they said.
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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 12.11.2012
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37.324 Kgs 5,850 155 6,005 6,005 NIL
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Equivalent
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40 Kgs 6,269 155 6,424 6,424 NIL
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