Lean business was again witnessed on the cotton market on Saturday ginners did not lower the asking prices due to short crop, dealers said. Karachi Cotton Association (KCA) official spot rate was unchanged at Rs 12,000, they said.
In Sindh and Punjab phutti price of low type was at Rs 3500 and superior type at Rs 4500, they said. In ready business, nearly 1200 bales of cotton changed hands between Rs 10600-11500, they added. According to the market sources, the ginners did not oblige the mills as they have very thin stocks and are confident they can sell them within one-day.
On the other hand, the mills were hoping for further decline in the rates, they said. Some analysts attributed the decline to reports of high crop estimate in the cotton producing countries. The other major reason behind the fall is less buying interest by the world consumers, they added. On Friday the US cotton futures closed down for a fourth straight day, extending a pullback from the $2/lb level as sentiment soured in response to another bearish outlook from Goldman Sachs.
The key May cotton contract on ICE Futures US shed 0.52 cent to finish at $1.9552 per lb, near the bottom end of its $1.9425 to $1.9801 range. Second-position July closed down 0.60 cent at $1.7740 per lb, while new crop December dropped 3.27 cents at $1.2918. Trading volume totalled 15,742 lots, more than 40 percent below the 30-day norm, Thomson Reuters preliminary data showed. The following deals were reported: 200 bales of cotton from Samandri sold at Rs 11000, same figure from Chichawatni at Rs 11500 and 797 bales of cotton from Hasilpur at Re 10600-10900.
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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 15.04.2011
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37.324 Kgs 12,000 120 12,120 12,120 NIL
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Equivalent
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40 Kgs 12,860 120 12,980 12,980 NIL
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