Prices in ready business and spot rate went up on the cotton market on Friday in process of thin trading, dealers said. Official spot rate was increased by Rs 100 to Rs 5,800, they added. In ready business over 2000 bales of cotton changed hands between Rs 5600-6200, they said.
Market sources said that prices went up on shortage of good quality cotton in the local market, but yarn prices also picked up on improved demand by the local and foreign buyers, particularly from China.
The other factor behind the fresh surge is rising trend in the NY cotton future, which most likely help prices to go up further, they said.
Report show that in India, the cotton purchase price for the long staple variant has been raised by 18 percent to 3,900 rupees per 100 kg.
Commenting on the rise in the support prices of Indian Phutti, Naseem Usman said that this factor may cause stability in the prices in the coming days.
According to the Reuters, the NY cotton futures closed higher on Thursday on active short covering in July ahead of deliveries that begin on June 25, analysts said.
The spot July cotton futures climbed the 3.00 cent daily limit to close at 78.09 cents per lb. The session low was 74.66 cents. The key December cotton contract on the ICE Futures US exchange rose 0.19 cent to finish at 70.60 cents per lb, dealing from 70.01 to 73.08 cents. The spread between July and December is at its widest since June 2011, according to Thomson Reuters data. Volume traded on Thursday reached over 47,300 lots, almost double the 30-day norm, it said.
The following deals were reported: 367 bales of cotton from Lodhran sold at Rs 5600, 200 bales of cotton from Basti Malook at Rs 5800, 699 bales of cotton from Ali Pur at the same rate, 1000 bales of cotton from Jalal Pur at the equal rate and 250 bales of cotton from Jam Pur at Rs 6200.
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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 14.06.2012
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37.324 Kgs 5,800 130 5,930 5,830 +100
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Equivalent
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40 Kgs 6,216 130 6,346 6,239 +107
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