In line with the global trend, the spot rate shot up on the cotton market on Monday, dealers said. Karachi Cotton Association (KCA) official spot rate was raised by Rs 500 to Rs 12500, they said. Phutti prices in Sindh were at Rs 4500 and in Punjab rates were unchanged at Rs 6400, they said.
Nearly 800 bales of cotton changed hands at Rs 14000, they said. There was no let-up in the bullish trend in the prices as the NY cotton futures hit 2.20 cents per lb, they said. They also said that recent demand and supply factor is giving an indication that unsold stock is decreasing and may cause further rise in the rates. Now, the unsold cotton stock is about 0.4 million bales, which is not enough to meet the local demand, they said. If present pace of rising trend in prices, continue, in ready, rates may hit Rs 15000 mark in the coming days, Naseem Usman said.
He also said that activity was lean in the absence of leading buyers due to persisting rise in the rates. The following deals were reported : some 400 bales of cotton from Rahim Yar Khan sold at Rs 14000 same figure from Fazilpur at the same rate, they said.
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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 05.03.2011
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37.324 Kgs 12,500 120 12,620 12,120 + 500
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Equivalent
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40 Kgs 13,396 120 13,516 12,980 + 536
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