Official spot rate was lowered on the cotton market on Wednesday as floodwater is going into the sea, dealers said. The Karachi Cotton Association (KCA) official spot rate was dropped by Rs 50 to Rs 6,500, they said. In the ready business over 10,000 bales of cotton changed hands between Rs 6300-6800, they said.
Seed cotton prices in Sindh were at Rs 2800-2850 and in Punjab prices were down by Rs 100 to Rs 2800-2900, they added. Phutti prices fell in both Sindh and Punjab on expectations of increase in imports from India due to some concession, they said. Commenting on the fresh rains in Sindh, some analysts said that rains may help in increasing rates in the coming days.
In the meantime, according to the news report, cotton topped the list of best-performing commodities in August as speculators piled into a market they saw as oversold, while corn and silver emerged as the next-biggest gainers and natural gas the main loser. On Tuesday the NY cotton futures closed easier after charging to a fresh two-year top as the market was hit by some profit-taking and investors wondered if a correction was imminent after the rally, brokers said. ICE Futures US benchmark December cotton contract eased 0.23 cent to finish at 86.20 cents per lb. The contract traded from 86.13 to 87.71 cents, the highest level for the second position contract since March 2008.
The following deals were reported: 1600 bales of cotton from Shahdad Pur sold at Rs 6500-6600, 2400 bales from Tando Adam at Rs 6500-6600, 600 bales from Mir Pur Khas at Rs 6450-6500, 800 bales from Sanghar at Rs 6450-6500, 200 bales from Khipro at Rs 6450, 600 bales from Nawab Shah at Rs 6400-6450, 1000 bales from Burewala at Rs 6450-6800, 400 bales from Khanewal at Rs 6700-6800, 1000 bales from Bahawal Nagar at Rs 6450-6700, 800 bales from Mian Channo at Rs 6450-6700, 400 bales from Chichawatni at Rs 6300-6500, 200 bales from Chistian at Rs 6500 and 400 bales from Pakpattan at Rs 6300.
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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 Spot Rate Difference
For Price Ex-Karachi Ex. KHI. As Ex-Karachi
on 31.08.2010
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37.324 kg 6,500 120 6,620 6,570 -50
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Equivalent
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40 kgs 6,966 120 7,086 7,032 -54
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