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Hectic buying was witnessed in the cotton market on Thursday as prices fluctuated but within limited range, dealers said. The official spot rate was unchanged at Rs 2375, without upcountry expenses. Cotton prices in Punjab were at Rs 2400 and Rs 2425 on rising demand.
According to the market sources, apparently it seems that the confusing reports about the size of the phutti arrivals worked as many spinners bought cotton in the big way to meet the future requirements.
They are still buying cotton due to unclear figures about the current season production, which is encouraging the ginners to keep prices mostly on the higher side.
They said that the buyers were active mostly for the Punjab type due to quality factor, which is helping the Punjab cotton to retain recent rise. Most of the deals stuck within Rs 2375 and Rs 2425, dealers said.
REUTERS ADDS: the New York Board of Trade's key March cotton contract shed 0.70 cent to end at 52.61 cents a lb., trading from 52.21 to 53.16 cents. May fell 0.60 to 53.90 cents. Two contracts aside, the rest lost 1.00 cent.
FOLLOWING DEALS WERE REPORTED: 3000 bales of cotton from Rahimyar Khan at Rs 2425, 2000 bales from Bahawalpur at the same level, same number from Rajanpur at Rs 2415, 200 bales from Arif wala at Rs 2400, 1600 bales from Khanpur at Rs 2415-2425, 400 bales from Galewala, same number from Jhanian at Rs 2425, 800 bales from Deraghazi Khan at Rs 2375, same number from Alipur at Rs 2425 and 800 bales from JalalPur at the same rate.



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The KCA Official Spot Rate for Local Dealings in Pak Rupees
-----------------------------------------------------------
FOR BASE GRADE 3 STAPLE LENGTH 1-1/32"
MICRONAIRE VALUE BETWEEN 3.8 TO 4.9 NCL
===========================================================
Rate Ex-Gin Upcountry Spot Rate Ex-Karachi
for Price Sales Tax @ 15%
===========================================================
37.32 Kgs 2375.00 50 2425.00
Equivalent-------------------------------------------------
40 Kgs 2545.00 50 2595.00
===========================================================

Copyright Business Recorder, 2005

Copyright Reuters, 2005

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