Easier trend was seen on the cotton market on Thursday as mills prefer to buy low quality stuff mainly because of financial problem, brokers said. The official spot rate was lowered by Rs 50 to Rs 3,700. Approximately 5,000 bales of cotton changed hands between Rs 3,400-3,650; they added.
Market sources said that most of the mills were interested in purchasing of inferior type of cotton as they haven't enough cash to pay on time. Even, China is also trying to lay hands on the lower quality of yarn, they said. Now the ginners were a little bit worried over the present trend in the prices ahead of arrival of new crop, expected in middle of the next month, they added.
In the first nine month of the current fiscal year the country was getting positive trend in the exports of textile items, according to the Federal Bureau of Statistics (FBS), the main commodities of exports during April, 2009 were Cotton cloth (Rs 11,169 million), Bedwear (Rs 10,216 million), Knitwear (Rs 8,782 million), Readymade garments (Rs 7,523 million), Cotton yarn (Rs 6,853 million).
On Wednesday, the NY cotton futures settled higher on investor buying inspired in part by firm outside markets in a choppy session, brokers said. The key July cotton contract gained 0.93 cent to end at 57.15 cents per lb, dealing from 55.85 to 57.60 cents.
It was an inside day since the range was within Tuesday's 55.78 to 57.90 cents band. Volume traded in the July contract was at 6,082 lots at 2:34 pm EDT (1831 GMT). The new-crop December cotton contract rose 0.88 cent to finish at 60.36 cents.
THE FOLLOWING DEALS WERE REPORTED: 1,000 bales of cotton from Sarhari sold at Rs 3,525; 400 bales from Khipro at Rs 3,550; 1,000 bales from Khidaro at Rs 3,400; 600 bales from Mirpur Mathelo at Rs 3,400 and 2,000 bales from Sadiqabad at Rs 3,650; dealers 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 3,700.00 100 3,800.00
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Equivalent
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40 Kgs 3,965.00 100 4,065.00
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