Steady trend was seen on the cotton market on Wednesday as buyers showed no reluctance in new deals on short crop news after historical floods in the country, dealers said. The Karachi Cotton Association (KCA) official spot rate was inert at Rs 6,450, they said. In the ready business nearly 9000 bales of cotton changed hands between Rs 6400-7000, they said.
Seed cotton prices in Sindh were Rs 2850-2900 and in Punjab prices went down at Rs 3100-3200, they added. According to the market sources, millers were so scared about the size of phutti arrivals in the near future but it looks that prices may show easier trend as picking operations are increasing due to improving weather.
Some cotton analysts said that ginners are keen in selling as they do not have enough space to keep unsold stock with them, so have to dispose off the commodity to make space for new phutti arrivals. On Tuesday the NY cotton futures ended at a four-month top as trade/mill and fund buying swiftly erased losses from a commodity-wide selling spree triggered by fears of a weak global economic recovery, analysts said.
ICE Futures US benchmark December cotton contract rose 1.13 cents to finish at 85.22 cents per lb, trading from 82.46 to 85.36 cents. It was the highest settlement close for cotton's second position contract since late April. Volume traded in the December contract hit a hefty 13,269 lots at 2:46 pm EDT (1846 GMT).
The following deals were reported: 800 bales of cotton from Sanghar sold at Rs 6400-6500, 1600 bales from Tando Adam at Rs 6400-6500, 1800 bales of cotton from Shahdad Pur at Rs 6400-6500, 200 balees from Kazi Ahmed at Rs 6450, 600 bales from Mir Pur Khas at Rs 6500, 200 bales from Bahawal Nagar at Rs 6700, 200 bales from Pak Pattan at Rs 6700, 200 bales from Pir Mahal at Rs 6750, 200 bales from Mamoo Kanjan at Rs 6800, 200 bales from Khanewal at Rs 6800, 2200 bales from Burewala at Rs 6800-7000, 200 bales from Gojra at Rs 6950 and 200 bales from Bahawal Nagar at Rs 7000.
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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"
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MICRONAIRE VALUE BETWEEN 3.8 TO 4.9 NCL
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Rate Ex-Gin Upcountry Spot Rate Spot Rate Difference
For Price Ex-Karachi Ex. KHI. As Ex-Karachi
on 24.08.2010
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37.324 Kgs 6,450 120 6,570 6,570 NIL
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Equivalent
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40 Kgs 6,912 120 7,032 7,032 NIL
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