Panic buying of cotton by mills and exporters pushed the prices at the new peak on the cotton market on Saturday, dealers said. The Karachi Cotton Association (KCA) official spot rate was raised further by Rs 100 at Rs 7800, they said. In the ready business, over 43,000 bales of cotton changed hands between Rs 7650-8000, they said.
Seed cotton prices in Sindh and the Punjab were at Rs 3550-3600, they said. Some viewers said that panic buying of cotton is indicating that the prices are likely to search for new destinations after hitting all-time high levels, it is most likely that the rates may hit the new high at Rs 8,500.
Presently, the factor which appeared is growers attitude, who are holding back phutti stocks to achieve better profits amid rising uncertainties about the crop size, they said. Some other analysts said that mills and exporters were buying cotton because they are definite that they will get better return in the coming days.
Strong buying of cotton by China and wage future strategy of India towards prices and exports are also keeping the prices on upside also on the local market, they said. On Friday the US cotton futures rose the daily limit on fund and investment buying after storms ripped through the key growing state of Texas late last night, analysts said.
ICE Futures US key December cotton contract increased the 4.00 cent limit to close at $1.1971 per lb. The session low was at $1.1525. It was the third consecutive day of gains for cotton, having topped out last week at the record top of $1.198. Volume traded in the cotton market stood at 21,430 lots, about 6.0 percent below the 30-day average at 22,794 lots, preliminary Thomson Reuters data showed.
The following deals were reported: 3200 bales of cotton from Mirpur Khas sold at Rs 7800, 3000 bales rom Nawabshah at Rs 7800, 3600 bales from Shahdadpur at Rs 7750-7800, 3000 bales from Sanghar at Rs 7700-7800, 2600 bales from Tando Adam at Rs 7800, 2200 bales from Khair Pur at Rs 7850-7900, 3000 bales from Upper Sindh at Rs 7950-8000, 200 bales from Tiba Sultan Pur at Rs 7650, 1000 bales from Burewala at Rs 7675-7800, 1400 bales from Khanewal at Rs 7700, 200 bales from Pir Mahal at Rs 7700, 200 bales from Vehari at Rs 7700, 800 bales from Liaqat pur at Rs 7700, 1600 bales from Haroonabad at Rs 7700, 1600 bales from Hasil Pur at Rs 7700-7800, 200 bales from Bahawal Nagar at Rs 7700, 600 bales from Shujabad at Rs 7800, 1000 bales from Chichawatni at Rs 7800-7900, 1400 bales from Bahawal Pur at Rs 7800, 2000 bales from Rahim Yar Khan at Rs 7800, 200 bales from Ahmed Pur at Rs 7800, 1000 bales from Yazman Mandi at Rs 7800-7900, 2000 bales from Rajan Pur at Rs 7900, 1200 bales from Khan Pur at Rs 7900, 1000 bales from Dera Ghazi Khan at Rs 7900, 1000 bales from Ahmedpur East at Rs 7750-7800, 1600 bales from Garh Mahraja at Rs 7800-7900 and 400 bales from Layyah at Rs 7800.
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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 22.10.2010
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37.324 Kgs 7,800 120 7,920 7,770 +150
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Equivalent
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40 Kgs 8,359 120 8,479 8,318 +161
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