Rates come down on cotton market as phutti arrivals increase

Prices fell on the cotton market on Saturday as the mills were not interested in finalising the deals at the higher rates, dealers said. After a gap of one-day the official spot rate continuously lowered by Rs 50 to Rs 3475, they said. In the ready business prices also came down by Rs 75 as some 10,000 bales changed hands between Rs 3350-3500, they said.
Phutti prices, in Sindh shed Rs 25 to Rs 1725-1750 and in Punjab the rates followed same pattern and quoted lower at Rs 1775-1800, they said. Market sources said that the mills made strong buying on the falling rates but now it seems that they may not take interest in further buying on the present rates as supply position of phutti improved. The ginners were trying to keep prices at the present levels, but they may not get the desired results, cotton analysts said.
On Friday, the NY cotton futures crumbled from investor liquidation to end sharply lower as weak US consumer confidence and a sell-off in other commodity markets pressured fibre contracts, brokers said. The December cotton contract in New York sank 2.97 cents to end at 61.12 cents per lb, trading from 64.50 to the 3.00-cents limit down at 61.09 cents. Volume in the December contract was at 9,328 lots at 2:46 pm EDT (1846 GMT). March cotton slid 2.86 cents to end at 63.59 cents.
The following deals were reported: 2000 bales of cotton from Shahdadpur sold at 3400-3450, 400 bales from Mirpurkhas at Rs 3425, 1000 bales from Sanghar at Rs 3425-3450, 1000 bales from Tando Adam at Rs 3425-3450, 2000 bales from Khipro at Rs 3400-3450, 400 bales from Sultanabad at Rs 3350, 200 bales from Pir Mahal at Rs 3500, 400 bales from Mian Channu at Rs 3475, 200 bales from Bahawalnagar at Rs 3475, 400 bales from Burewala at Rs 3475, 200 bales from Muridwala at Rs 3475, 400 bales from Chichawatni at Rs 3475, 400 bales from Arif wala at Rs 3475, 400 bales from at Rs Pak Pattan 3475 and 600 bales from Sahiwal at Rs 3475, 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     3,475.00      100                   3,575.00

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Equivalent

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40 Kgs         3,724.00      100                   3,824.00

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