Prices recovered modestly on the cotton market on Saturday in the process of modest trading, dealers said. The official spot rate was unchanged at Rs 6900, they said. Prices of seed cotton in Sindh per 40 kg were unchanged at Rs 2500-2900, in Punjab rates were at Rs 2800-3000, dealers said. In the ready session, around 7000 bales of cotton changed hands between Rs 6200-7100, they said.
Market sources said that cyclone in Indian played a major role behind the improvement in activity because millers and spinners made forward buying in anticipation of rise in prices. In the meantime, it is very much visible that some of the leading participants were sidelines ahead of Eid-ul-Azha holidays, other experts said. Cotton analyst, Naseem Usman said that it is very difficult to predict about the direction of market but most probably, price may not fluctuate sharply in days to come.
Reuters adds: the NY cotton futures edged up on Friday as rain in India threatened supplies in the world's No 2 producer, though prices still posted the biggest weekly loss since late August. The most-active December cotton contract on ICE Futures US edged up 0.20 cent, or 0.2 percent, to settle at 83.37 cents a lb. Friday's slight gains were not enough to offset steep losses early in the week and fiber posted its biggest weekly drop in seven weeks.
Cotton on Friday outperformed the broader commodity market, as the Thomson Reuters-Jefferies CRB index fell 0.27 percent on the day. The following deals reported as 400 bales of cotton from Kot Ghulam Mohammad at Rs 6200-6300, 800 bales from Mir Pur Khas at Rs 6200-6400, 400 bales from Nawab Shah at Rs 6800, 600 bales from Khair Pur at Rs 7000/7050, 800 bales from Upper Sindh at Rs 7000/7050, 200 bales from Ahmed Pur at Rs 7000, 1400 bales from Burewala at Rs 7000/7050, 200 bales from Toba Tek Singh at Rs 7050, 200 bales from Dahran Wala at Rs 7050, 200 bales from Chichawatni at Rs 7050, 200 bales from Layyah at Rs 7050, 200 bales from Pir Mehal at Rs 7075, 200 bales from Faqir wali at Rs 7075, 400 bales from Fort Abbas at Rs 7100, 400 bales from Sadiqabad at Rs 7100 and 400 bales from Rahim yar Khan at Rs 7100, 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 11.10.2013
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37.324 Kgs 6,900 155 7,055 7,055 NIL
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Equivalent
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40 Kgs 7,395 155 7,550 7,550 NIL
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