Buying interest by mills was seen on the cotton market on Tuesday as they preferred to make deals at present rates, dealers said. The Karachi Cotton Association (KCA) official spot rate was inert at Rs 6,300, they said. Prices of seedcotton in Sindh were unchanged at Rs 2300-2800 and rates in Punjab followed the same path, showing no change at the overnight levels at Rs 2000-3000, they said.
In ready dealings over 9,000 bales of cotton changed hands between Rs 5,500-6,500, they added. In fact, the mills are not hoping for further decline in the rates as the growers were not selling phutti at the lower prices, instead they are holing back the supply to keep prices at the realistic levels, they said.
They said it looks that the prices may not fluctuate sharply in the coming days due to cautious selling by growers. On Monday the NY cotton futures finished with small losses as the market seemed to be finely balanced between investor sales and mill/commercial buying in the market, analysts said.
The key December cotton contract on ICE Futures US dropped 1.60 cents, or 1.5 percent, to close at 99.64 cents a lb, trading from 99.52 cents to $1.023. The range was little changed from Friday's band of 99 cents to $1.02. Last Thursday, December ended at 99.29 cents a lb, marking the first time since August. 11 that the second position cotton contract closed under the psychological $1 per lb mark.
Total volume on Friday on the cotton market was 14,873 lots, versus the previous session's 22,185 lots, ICE Futures US data showed. Monday's volume of almost 11,700 lots was less than five percent under the 30-day norm, preliminary Thomson Reuters data showed.
The following deals were reported: 600 bales of cotton from Mir Pur Khas sold at Rs 5900, 200 bales of cotton from Tando Adam at Rs 5500, 1400 bales of cotton from Khair Pur at Rs 6400, 400 bales of cotton from Saleh Pat at Rs 6500, 1600 bales of cotton from Khanewal at Rs 6350-6500, 400 bales of cotton from Khan Pur at Rs 6500, 400 bales of cotton from Rajan Pur at Rs 6400, 600 bales of cotton from Haroonabad at Rs 6300/6350, 200 bales of cotton from Kassowal at Rs 6400, 200 bales of cotton from Pak Pattan at Rs 6200, 400 bales of cotton from Chistian at Rs 6200, 400 bales of cotton from Burewala at Rs 6200, 200 bales of cotton from Layyah at Rs 6300, 400 bales of cotton from Bahawal Pur at Rs 6300-6400, 400 bales of cotton from Chichawatni at Rs 6400, 200 bales of cotton from Bahawal Nagar at Rs 6200 and 400 bales of cotton from Mian Channun at Rs 6300-6400.
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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 26.09.2011
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37.324 Kgs 6,300 130 6,430 6,430 NIL
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Equivalent
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40 Kgs 6,752 130 6,882 6,882 NIL
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