Decline in the prices on the cotton market continued on Thursday, kept the buyers in uncertainties, dealers said. The Karachi Cotton Association (KCA) official spot rate slide continued for the fourth day in a row, lowered by Rs 100 to Rs 5,400, they said.
Seedcotton prices were unchanged in Sindh at Rs 2000-2300 and in Punjab rates were also inert at Rs 2000-2500, they said. In ready dealings above 20,000 bales of cotton changed hands at Rs 3,150-5,400, they added. According to the market sources, the ginners did not show any reluctance in selling at the prevailing levels, it is very much likely that prices may come down further in the absence of genuine buyers, ie China and India.
In the past it was observed that on the occasion of Christmas buying of cotton or textile products increased but presently, there is no much business on this sector, they added. According to a report, Cameroon will start construction of a $10 million cotton mill next year in an effort to boost value-aded exports, officials said.
The Development Bank of Central African States and Societe Generale de Banque de Cameroun have agreed to raise one billion CFA francs - about 20 percent of the total cost of the project, the government said. On Wednesday the NY cotton futures finished mixed as the market pruned early losses on commercial buying ahead of the holiday, analysts said.
The cotton market will be closed on Thursday for Thanksgiving. Trading resumes in a shortened session on Friday. The spot December cotton contract on ICE Futures US rose 0.76 cent to finish at 90.71 cents per lb, dealing from 89.22 to 91.70 cents. Now most-active March cotton fell 0.21 cent to end at 90.91 cents, moving from 90.10 to 91.91 cents. Total volume traded on Wednesday hit over 12,700 lots, about 45 percent below the 30-day norm, preliminary Thomson Reuters data showed.
The following deals were reported: 400 bales of cotton from Sakrand sold at Rs 4400, 400 bales from Sultanabad at Rs 3150, 400 bales of cotton from Tando Adam at Rs 3475, 1000 bales of cotton from Mir Pur Khas at Rs 3600/4200, 2000 bales of cotton from Khair Pur at Rs 4900, 2000 bales of cotton from Upper Sindh at Rs 5200/5250, 1000 bales of cotton from Faqir Wali at Rs 5000/5100, 200 bales of cotton from Bakkhar at Rs 5000, 1000 bales of cotton from Bahawal Pur at Rs 5150/5300, 1000 bales of cotton from Haroonabad at Rs 5100, 1000 bales of cotton from Vehari at Rs 5200/5300, 1000 bales of cotton from Ahmed Pur at Rs 5200, 1400 bales of cotton from Burewala at Rs 5200/5300, 600 bales of cotton from Yazman Mandi at Rs 5200, 1200 bales of cotton from Lodhran at Rs 5200/5300, 200 bales of cotton from Mubaraik Pur at Rs 5200, 400 bales of cotton from Pak Pattan at Rs 5200, 400 bales of cotton from Layyah at Rs 5300, 1000 bales of cotton from Khanewal at Rs 5300, 800 bales of cotton from Shujabad at Rs 5300, 400 bales from Mian Chanun at Rs 5300, 1600 bales of cotton from Mian Wali at Rs 5400, 400 bales of cotton from Sadiqabad at Rs 5400, 400 bales of cotton from Liaquat Pur at Rs 5400 and 1000 bales of cotton from Khan Pur at Rs 5400.
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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 23.11.2011
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37.324 Kgs 5,400 130 5,530 5,630 - 100
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Equivalent
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40 Kgs 5,787 130 5,917 6,024 - 107
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