Persisting demand pushed the prices further higher on the cotton market on Tuesday, dealers said. The Karachi Cotton Association (KCA) official spot rate was raised further by Rs 100 to Rs 7250, they said. In the ready business nearly 20,000 bales of cotton changed hands between Rs 4200-7450, they said.
Furthermore, seed cotton prices in Sindh were unmoved at Rs 3250-3300, in Punjab prices were higher at Rs 3000-3200, they added. Market sources said that prices may decline due to improvement in the pace of phutti arrivals. In the meantime, many in the market were anticipating that the prices to go up after the delay in exports of cotton by Indian government, some analysts said.
It seems that the mills may indulged in panic buying as a result of increase in supply position, they said. The US cotton futures jumped to highest in 15 years on Tuesday, extending a fund-driven rally in New York. ICE Futures US benchmark December cotton contract hit a high of $1.0615 an lb - its strongest level since hitting $1.17 in 1995.
On Monday the NY cotton futures surged by their daily limit to settle at a new 15-year peak due to mill and speculative fund buying, with market sources expecting a test of record highs set in 1995 in coming weeks. ICE Futures US key December cotton contract rose by its 4.00 cent limit to close at $1.0393 per lb, with the day's low at $1.0075.
That marked the loftiest finish for the second position cotton contract since 1995, and the second time since the current rally began in mid-July that cotton closed over $1/lb. Volume stood at 24,828 lots at 2:42 pm EDT (1842 GMT), nearly two-thirds higher than the 30-day average of 15,027 lots, preliminary Thomson Reuters data showed. Data from ICE Futures US showed open interest in cotton futures at 236,866 lots as of Friday, up slightly from the previous tally of 235,919 lots.
The following deals were reported: 3000 bales of cotton from Tando Adam sold at Rs 7300-7400, 1000 bales from Hyderabad at Rs 7300-7400, 1200 bales from Shahdad Pur at Rs 7300-7400, 400 bales from Kotri 7400, 400 bales from Sultanabad at Rs 7400, 200 bales from Mir Pur Khas at Rs 7400, 1200 bales from Nawabshah at Rs 7400-7440, 600 bales from Upper Sindh at Rs 7400-7450, 1200 bales from Khair Pur at Rs 7350-7400, 400 bales from Gojra at Rs 7200, 200 bales from Karam Pur at Rs 7200, 800 bales from Bahawal Pur at Rs 7200, 400 bales from Noor Pur at Rs 7200, 200 bales from Pir Mahal at Rs 7250, 600 bales from Hasil Pur at Rs 7250-7300, 1000 bales from Burewala at Rs 7250-7300, 400 bales from Gaggo Mandi at Rs 7250, 400 bales from Khanewal at Rs 7275-7300, 2000 bales from Chichawatni at Rs 7275-7300, 400 bales from Muridwala 7200/7300, 200 bales from Bakhar at Rs 7300, 200 bales from Rinala Khurd at Rs 7300, 400 bales from Mian Channo 7300, 200 bales from Haroonabad at Rs 7300, 200 bales from Ghaziabad at Rs 7300, 600 bales from Shadan Lund at Rs 7300, 200 bales from Pul Bagarh at Rs 7300, 200 bales from Mianwali at the same rate and 300 bales from Bahawal Nagar at Rs 7300.
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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 27.09.2010
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37.324 Kgs 7,250 120 7,370 7,270 +100
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Equivalent
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40 Kgs 7,770 120 7,890 7,783 +107
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