As was expected, new seed cotton arrivals had started reaching into the ginneries as huge stock of unsold stock was still with ginners and causing financial loss for them, dealers said on the cotton market on Saturday. The official spot rate was inert at Rs 6,400, they said. In the ready business, over 3,000 bales of cotton were sold between Rs 6200-6600, dealers said.
Cotton analyst, Naseem Usman said that new Phutti arrivals from Badin started as two trucks of seeds of seed cotton were sold at Rs 3100 per 40 kg. He also said nearly 80 percent of cotton sowing in the country had been completed and if monsoon lasted for many days, it might hurt the quality of crop. On the other hand, other experts said that shortage of irrigation water might be a negative factor in achieving the size of new production.
According to the Reuters, the NY cotton prices closed lower on Friday as investors sold fibre after officials in China - the world's biggest importer - gave their first indication they may rein in a years-long buying spree that has boosted prices but damaged the country's mills. "That doesn't help. It definitely weighed on the market," said a US trader.
The selling saw early gains to just shy of 86 cents per lb evaporate. The market had initially welcomed better-than-expected US jobs data that ignited hopes that an improvement in the world's largest economy will boost demand for fibre from the clothes retailers. After falling as much as 0.65 percent, the most-active July cotton contract on ICE Futures US settled down 0.01 cent, or 1.6 percent, at 84.86 cents a lb.
Even so, the market ended the week up seven percent, its best weekly performance since October last year. Prices staged a big recovery this week due to pent-up buying after prices sank below 80 cents per lb, a four-month low a week ago. The following deals reported: 250 bales of cotton from Sanghar sold at Rs 5150, 600 bales from Ghotki at Rs 637 and 200 bales from Bahawal Pur at Rs 6500, 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 07.06.2013
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37.324 Kgs 6,400 155 6,555 6,555 NIL
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Equivalent
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40 Kgs 6,859 155 7,014 7,014 NIL
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