Week begins with over-all fall in prices, spot rate drops to Rs 5,200 on cotton market

Prices after a little gap fell sharply on the cotton market on Monday as phutti arrivals maintained pace amid rising interest by mills in the fresh purchasing, dealers said. The Karachi Cotton Association (KCA) official spot rate was dropped by Rs 300 to Rs 5,200, they said.
In both, Sindh and Punjab seed-cotton rates were down by Rs 300-200 to Rs 2100-2200, they said. In the ready business, approximately, 16,000 bales of cotton changed hands between Rs 4,800-5,200, dealers added. Market sources said that cotton prices are under pressure as last year seed-cotton was available at Rs 6000 and presently prices are still on downward trend in the absences proper demand for cotton yarn. In the meantime, exporters' entry is good omen and it looks that foreign demand is in the pipeline, they said.
Declining trend in the rates caused attraction to exporters and rising demand by mills, as well, they said. Weak economic scenario is one of the major factors behind the slide in the prices, they added. The following deals were reported: 2000 bales of cotton from Shahdad pur sold at Rs 4800-5200, 1800 bales from Sanghar at Rs 4800-5200, 1600 bales from Hyderabad at Rs 4800-5200, 600 bales from Matiari at Rs 4900-5200, 800 bales from Tando Adam at Rs 5000-5200, 1600 bales from Mir Pur Khas at Rs 4800-5200, 1200 bales from Chichawatni at Rs 5000-5200, 800 bales from Mian Chunnun at Rs 5000-5200, 600 bales from Sahiwal at Rs 5000-5200, 200 bales from Depal Pur at Rs 5150, 400 bales from Hasil Pur at Rs 5000-5150, 400 bales from Lodhran at Rs 5000, 400 bales from Burewala at Rs 5000, 400 bales from Haroonabad at Rs 5000, 200 bales from Samandari at Rs 4800, 200 bales from Gajjo at Rs 4800, 200 bales from Dunia Pur at Rs 4800, 800 bales from Khanewal at Rs 4800-5200 and 1000 bales from Bahawal Nagar at Rs 4900-5200.

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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 23.07.2011

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37.324 Kgs         5,200      120        5,320        5,620            -300

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Equivalent

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40 Kgs             5,573      120        5,693        6,014            -321

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