Mills and exporters demand pushed prices higher on the cotton market on Friday, dealers said. The Karachi Cotton Association (KCA) official spot rate was raised by Rs 100 to Rs 7650, they said. In the ready business, over 30,000 bales of cotton changed hands between Rs 7600-7900, they said.
Seed cotton prices in Sindh were at Rs 3500-3550, in Punjab at Rs 3450-3600, they added. Commenting on the latest developments some analysts said that prices crossed the record levels but still it looks that the rates may continue upward march in the coming days because of persisting rise in the international markets.
The interesting thing to note is delay in harvesting of cotton in India and late arrival of phutti in the country could be a factor behind the short supply and soaring prices as well, they said. In fact, China extending demand and other foreign buying of cotton causing unprecedented rise in the prices, they said.
One of the latest and major factor is the import of Indian cotton because it appeared that due to rise in the rates, India may adopt delay dialling practice to gain maximum profit, they said. On Thursday the US cotton futures closed higher on suspected trade/mill and speculative buying as the market defied losses in other commodity markets and the stronger dollar to march higher, analysts said.
ICE Futures US key December cotton contract increased 1.45 cents to close at $1.1571 per lb. The contract traded from $1.1426 to $1.176. Volume traded in the cotton market stood at 22,147 lots, less than half a percent below the 30-day average at 22,263 lots, preliminary Thomson Reuters data showed.
The following deals were reported: 2200 bales of cotton from Shahdadpur sold at Rs 7650-7700, 2200 bales from Tando Adam at Rs 7700, 2400 bales from Sanghar at Rs 7625-7700, 2600 bales from Nawabshah at Rs 7700, 3000 bales from Khair Pur 7750-7800, 2800 bales from Upper Sindh at Rs 7780-7800, 1000 bales from Mianwali at Rs 7900, 1200 bales from Rajanpur at Rs 7800, 1000 bales from Dera Gazi Khan at Rs 7800, 1200 bales from Chichawatni 7650-7700, 2000 bales from Burewala at Rs 7650-7700, 600 bales from Sadiqabad at Rs 7700, 400 bales from Liaquat Pur at Rs 7600, 400 bales from Rahim Yar Khan at Rs 7600, 1000 bales from Khanewal at Rs 7650-7700, 1000 bales from Sahiwal at Rs 7600-7700, 1200 bales from Haroonabad at Rs 7600-7700, 1000 bales from Vehari at Rs 7600-7650, 1200 bales from Mian Channu at Rs 7600-7700 and 400 bales from Muridwala at Rs 7650.
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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 21.10.2010
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37.324 Kgs 7,650 120 7,770 7,670 +100
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Equivalent
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40 Kgs 8,198 120 8,318 8,211 +107
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