Rates came down on the cotton market on Saturday in the absence of fresh leads, dealers said. The official spot rate after maintaining firm for several sessions, was reduced by Rs 100 to Rs 5,500, they said. Prices of seedcotton in Sindh were at Rs 2000-2400 and in the Punjab at Rs 2200-2700, they said.
In ready dealings about 13,000 bales of cotton changed hands at Rs 4,200-5750, they said. Commenting on the present trend in the rates, some cotton analysts said that there is poor response from the foreign buyers as our exporters are not meeting the deadlines and this factor is pulling out the local exporters from the foreign markets.
Naseem Usman said that the Trading Corporation of Pakistan (TCP) is still on the sidelines, dollar is firm and in the international exhibitions, Pak exporters are not winning orders because of poor law and order situation and lack of basic facilities in the country.
Cotton traders ere expecting TCP to come as second buyers, but it is not in the picture, so it is likely that prices may come down further in the coming days, dealers said. Other brokers said that sporadic rains in the Punjab is good for the cotton crop and may not cause damage to the standing crop in the field.
According to the Reuters On Friday, the New York Cotton futures finished with modest losses within their new higher range, with little news to move prices in either direction and most investors keen to maintain steady positions ahead of the long holiday weekend.
US commodity and financial markets will be closed on Monday for the Martin Luther King holiday. Benchmark March cotton futures settled slightly lower at 95.47 cents a lb and held in a narrow range between 94.52 and 95.98 cents. Earlier, it reached a high last seen on November 18 at 97.50 cents. The contract finished the week with minimal losses, but still in the middle of the higher plateau carved out since the start of the year. March volume was light at 9,745 lots, well below the previous session's robust tally of 17,209 contracts.
The following deals were reported: 400 bales of cotton from Sanghar sold at Rs 4200, 400 bales of cotton from Shahdad Pur at Rs 4300/4500, 400 bales of cotton from Tando Adam at Rs 4350, 400 bales of cotton from Saleh Pat at Rs 5600, 1000 bales of cotton from Faqir Wali at Rs 5300/5350, 1000 bales of cotton from Haroonabad at Rs 5300/5400, 600 bales of cotton from Hasil Pur at Rs 5450/5500, 600 bales of cotton from Bahawal Pur at Rs 5500/5600, 400 bales of cotton from Fort Abbas at Rs 5500, 400 bales of cotton from Qaboola at Rs 5500, 400 bales of cotton from Vehari at Rs 5600, 600 bales of cotton from Yazman Manci at Rs 5600, 200 bales of cotton from Gojra at Rs 5600, 400 bales of cotton from Burewala at Rs 5650, 400 bales of cotton from Tonsa Sharif at Rs 5700, 400 bales of cotton from Shadan Lund at Rs 5700, 400 bales of cotton from Noor Pur at Rs 5700, 400 bales of cotton from Jalal Pur at Rs 5700, 1000 bales of cotton from Khanewal at Rs 5700, 800 bales of cotton from Mian Wali at Rs 5700/5750, 400 bales of cotton from Rahim Yar Kan at Rs 5750, 400 bales of cotton from Sadiqabad at Rs 5750, 600 bales of cotton from Lodhran at Rs 5550-5600.
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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 13.01.2012
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37.324 Kgs 5,500 130 5,630 5,730 -100
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Equivalent
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40 Kgs 5,894 130 6,024 6,132 -108
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