The official spot rate was raised on the cotton market on Tuesday in hectic buying by the mills on rising concern about the problems on the imports front, dealers said. The official spot rate was sharply increased by Rs 75 to Rs 3200, they said. Phutti prices in Sindh and Punjab were modestly up at Rs 1550-1650, they added.
An international farm group said on Monday that the global cotton imports will fall 6 percent in 2008/09 to 7.8 million tons, pulled down by declining cotton mill use. The International Cotton Advisory Committee secretariat said in a monthly report that declines in cotton imports will be even greater in China (mainland), where imports are expected to drop 10 percent to 2.3 million tons.
Other brokers said that the despite having good figure in the fortnightly Pakistan Cotton Ginners Association (PCGA) report, the prices are on rise, but now it seems that the rates may show firmness instead of going up. The growers, who have stopped selling cotton, now again started at the present rates on anticipation of increase of unsold stock, they said.
On Monday, the NY cotton futures were higher as the key December cotton contract rose 0.39 cent to finish at 44.68 cents per lb, after setting a slim range between 44.36 and 45.14 cents a lb. On Friday, the December contract tumbled to a new lifetime low of 43.64 cents, a level last seen in February 2005. March cotton ended 0.62 cent higher at 49.15 cents, a 1.28 percent increase.
December cotton volume was a light 9,633 lots by 2:40 pm (1840 GMT). According to the phutti arrivals figure released by the Pakistan Cotton Ginners Association (PCGA) report for fortnight ended November 1, 2008 a total of nearly 5.3 million bales arrived at the ginneries, against the last year figure of about 4.2 million bales.
THE FOLLOWING DEALS WERE REPORTED: 1000 bales of cotton from Sanghar sold at Rs 3050-3100,1600 bales from Shahdadpur at Rs 3100, 1000 bales from Tando Adam at Rs 3100, 600 bales from Khipro at Rs 3100, 400 bales from Sakrand at Rs 3100, 1000 bales from Khairpur at Rs 3125-3200, 1000 bales from Rahim Yar Khan at Rs 3250, 1000 bales from Hasilpur at Rs 3200, 1600 bales from Khanpur at Rs 3200-3250, 1000 bales from Liaquatpur at Rs 3200-3250, 1800 bales from Bahawalpur at Rs 3200-3250, 1400 bales from Ahmedpur at Rs 3200-3250, 1000 bales from Chichawatni at Rs 3175-3200, 400 bales from Bhakkar at Rs 3140, 400 bales from Bhawalnagar at Rs 3200, 400 bales from Alipur at Rs 3200, 800 bales from Mian Channu at Rs 3200, 600 bales from Kassowali at Rs 3200, 400 bales from Monri Banglaw at Rs 3175, 200 bales from Pir Mahal at Rs 3200, 400 bales from Sahiwal at Rs 3200, 400 bales from Lodhran at Rs 3200, 1000 bales from Khanewal at Rs 3200, 600 bales from Uch Shari at Rs 3200, 1000 bales from Rajanpur at Rs 3250 and 1000 bales from Fazilpur at Rs 3200-3250, 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"
MICRONAIRE VALUE BETWEEN 3.8 TO 4.9 NCL
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Rate Ex-Gin Upcountry Spot Rate Ex-Karachi
for Price Sales Tax @ 15%
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37.324 Kgs 3,200.00 100 3,300.00
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Equivalent
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40 Kgs 3,429.00 100 3,529.00
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