Prices were firm on the cotton market on Friday following the disruption in phutti arrivals to the ginneries, dealers said. The Karachi Cotton Association (KCA) official spot was unchanged at Rs 6,200, they said. Seedcotton rates in Sindh did not show any change at Rs 2900-3000, prices in Punjab followed , depicting no variation in the overnight rates at Rs 2700-2800, they said.
In the ready business nearly 5000 bales changed hands between Rs 6,200-6,500, dealers added. Commenting on latest development in the market, some analysts said that if cotton belt areas receive rains, this will cause further delivery problem and may cause modest rise in the prices.
It is expected that the country is likely to get 16 million bales of cotton during the current season, they said. Some of them said, increase in cotton production is highly projected, which is before time to say about the definite size of cotton. Because it should be waited till the final figure of production reach the market, some brokers said.
On Thursday the NY cotton futures settled lower on investor sales as the inability of the market to build on the gains of the previous session prompted players to dump fibre contracts, analysts said. The key December cotton futures on ICE Futures US fell four cents or by 3.69 percent to finish at the session low of $1.0446 per lb, with the day's top trade at $1.087.
On Tuesday the contract ended at $1.0439 to mark the lowest close for the second position cotton contract since early October 2010, Thomson Reuters data showed. Volume traded was over 12,100 lots at 2:47 pm EDT (1847 GMT), more than a third below the 30-day norm, Thomson Reuters preliminary data showed. Independent cotton analyst Mike Stevens in Louisiana said the market filled a gap left over from Tuesday in the December contract of $1.0888 to $1.0679 and this should have opened the door for a test of $1.11 to $1.13.
The following deals were reported: 200 bales of cotton from Mir Pur Khas sold at Rs 6300, 600 bales from Sahiwal at Rs 6200-6300, 200 bales from Kacha Koh at Rs 6200, 600 bales from Mian Channun at Rs 6250-6400, 400 bales from Chichawatni at Rs 6250, 800 bales from Burewala at Rs 6300-6500, 200 bales from Samandari at Rs 6325, 600 bales from Khanewal at Rs 6300/6400, 200 bales from Arifwala at Rs 6200, 400 bales from Depal Pur at Rs 6250-6300, 200 bales from Hasil Pur at Rs 6300 and 200 bales from Khan Pur at Rs 6400.
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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 13.07.2011
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37.324 Kgs 6,200 120 6,320 6,320 NIL
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Equivalent
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40 Kgs 6,645 120 6,765 7,765 NIL
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