Seed cotton arrivals accelerated on the cotton market on Thursday, which caused further decline in the rates, dealers said. The official spot rate dropped sharply by Rs 200 to Rs 5,050, they added. In the ready session, around 16,000 bales of cotton changed hands between Rs 5000 and Rs 5400, they said. In Sindh, rates were down by Rs 100 to Rs 2300 and Rs 2450, in Punjab prices of inferior variety was unchanged at Rs 2200 while the fine quality shed Rs 50 to Rs 2500, they said.
Some analysts were of the view that slow demand by cotton importing countries, particularly, China, pushing rates down sharply. Some other marketmen said that ginners wanted to dispose of as much as they can, in the meantime, it is expected that prices may not fluctuate sharply in times to come.
Reuters adds: Cotton futures fell to their lowest levels in five years on Wednesday on fears of reduced global demand in response to top consumer China's plans to set a quota on imports. The most-active December cotton contract on ICE Futures US tumbled 2.8 percent to 61.07 cents a lb early in the session, its lowest level since hitting 60.67 cents in October 2009. Prices later rebounded slightly and were down 1.58 cents, or 2.5 percent, at 61.27 cents a lb at 10:59 am EDT (1459 GMT).
The following deals reported: 2000 bales of cotton from Mirpurkhas at Rs 5000-5050, 400 bales from Shahpur Chakar at Rs 5000, 1400 bales from Sanghar at Rs 5000-5050, 1000 bales from Hyderabad at Rs 5000-5100, 1000 bales from Kotri at Rs 5000-5100, 1200 bales from Shahdadpur at Rs 5000-5150, 1400 bales from Tando Adam at Rs 5000-5150, 1000 bales from Nawabshah at Rs 5200, 2000 bales from Khairpur at Rs 5200-5275, 1000 bales from Upper Sindh at Rs 5200-5250, 200 bales from Sahiwal at Rs 5100, 200 bales from Chistian at Rs 5175, 200 bales from Gaggo Mandi at Rs 5200, 600 bales from Burewala at Rs 5200, 200 bales from Vehari at Rs 5200, 200 bales from Bahawalnagar at Rs 5200, 200 bales from Kehror Pacca at Rs 5200, 200 bales from Kabirwala at Rs 5200, 200 bales from Khanewal at Rs 5250, 400 bales from Layyah at Rs 5250, 200 bales from Duniyapur at Rs 5250, 400 bales from Hasilpur at Rs 5250, 200 bales from Mianwali at Rs 5300 and 400 bales from Rajanpur at Rs 5250-5400, they said.
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The KCA Official Spot Rate for Local Dealings in Pakistan 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 24.09.2014
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37.324 Kgs 5,050 150 5,200 5,400 -200
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Equivalent
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40 Kgs 5,412 160 5,572 6,786 -214
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