Bearish trend persisted on the cotton market on Thursday as mills were making new deals to keep themselves safe from any apprehension, dealers said. The Karachi Cotton Association (KCA) official spot rate was extended overnight fall by Rs 200 to Rs 6,700, they said.
In the ready business over 4000 bales of cotton changed hands between Rs 6000-6700, a deal of 200 bales from Sultanabad at Rs 6000 was for delivery on August 5, 2010, they said. Phutti prices in both Sindh and Punjab were same at Rs 2700-2750 and at Rs 2700-3000, respectively, they added.
Some brokers said that the prices are still on the downward march due to good phutti arrivals, as a result 30 to 35 ginning factories may start operation within 2-3 weeks. Falling trend in the rates are indicating that prices may come down further due to easy supply position, they said.
It looks that the growers and ginners are not in a commanding position after the fact that standing crop in the fields is in a good condition after the recent rains, they said. If rains start again within one or two days, it may not prove good but if downpour begins after 1-2 week, it will definitely help in achieving the target, they added.
It is expected that the prices may fall in the near future and ginners will try to sell the commodity due to lack of storing capacity, other analysts said. On Thursday the NY cotton futures settled fractionally higher on late investor buying as the market's downward spiral seemed to have slowed down and futures consolidated, brokers said.
The key December cotton contract gained 0.12 cent to close at 73.47 cents per lb, dealing from 73.06 to 74.29 cents. On Wednesday, the contract ended near a five-month low at 73.35 cents. Volume traded in the December contract stood at 7,130 lots at 2:31 pm EDT (1831 GMT).
The following deals were reported: 200 bales of cotton from Sultanabad sold at Rs 6600, 200 bales from Sultanabad at Rs 6500, 200 bales from Sultanabad at Rs 6200, 200 bales from Sultanabad at Rs 6000, (5th August Del), 200 bales from SDU at Rs 6550, 400 bales from Sanghar at Rs 6500, 400 from Sanghar at Rs 6400, 200 bales from SDU at Rs 6500, 200 bales from Arifwala at Rs 6700, 400 bales from KWL at Rs 6700, 400 bales from Burewala at Rs 6600, 600 bales from Kabirwala at Rs 6600, 200 bales from RYK at Rs 6500, 200 bales from KWL at Rs 6500 and 600 bales from Pak Pattan at Rs 6500.
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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 6,700.00 100 6,800.00
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Equivalent
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40 Kgs 7,180.00 100 7,280.00
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