KCA raises spot rate by Rs 100 as ginners adopt cautious strategy towards selling

As a result of cautious selling by ginners, prices stabilised on the cotton market on Saturday, dealers said. The official spot rate was raised by Rs 100 to Rs 5650, they said. In the ready business over 10,000 bales of cotton changed hands between Rs 5675-5800, they said.
The prices of seedcotton in Sindh improved by Rs 50 to Rs 2650-2700, in the Punjab low type gained Rs 50 to Rs 2550 and best type was up by Rs 50 to Rs 2600, they said. The mills played an active role on expectations of improvement in demand in days to come, dealers said Naseem Usman said that the ginners were refraining from panic selling which may push up prices or stabilise ahead of Eid-ul-fitr holidays.
According to the Reuters, the NY cotton futures settled at a 2-1/2 month high on Friday on speculative fund buying inspired by a report that showed US employers hiked hiring in July by the most in five months, analysts said. The Labour Department said non-farm payrolls rose by 163,000 last month, breaking three straight months of job gains under 100,000.
Oil and financial markets climbed on the news, which in turn stoked cotton's advance. "The direction for the next couple (of days and weeks) is possibly up," said Jobe Moss, a dealer at analyst and brokers MCM Inc in Lubbock, Texas. The benchmark December cotton contract on ICE Futures US jumped 2.97 cents or by 4.18 percent to finish at 73.94 cents per lb, dealing from 70.74 to up the 3.00-cent daily limit at 73.97 cents.
It was the loftiest settlement for the benchmark contract since June 19, according to Thomson Reuters data. For the week, the market was up almost 3.5 percent. Volume traded on Friday amounted to around 23,800 lots, about a third below the 30-day norm, Thomson Reuters data said.
The following deals were reported: 1400 bales of cotton from Shahdad Pur at Rs 5750/5800, 1600 bales of cotton from Sanghar at Rs 5750/5800, 1200 bales of cotton from Tando Adam at Rs 5750/5800, 600 bales of cotton from Kotri at Rs 5750/5800, 800 bales of cotton from Hyderabad at Rs 5750/5800, 400 bales of cotton from Sahiwal at Rs 5675/5700, 1400 bales of cotton from Burewala at Rs 5675-5750, 200 bales of cotton Chchawatni at Rs 5700, 600 bales of cotton from Arif Wala at Rs 5700, 400 bales of cotton at Rs Mian Channu at Rs 5700, 200 bales of cotton from Jahanian at Rs 5715 and 200 bales of cotton from Pul Bagar at Rs 5750.

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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 03 08.2012

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37.324 Kgs       5,650      130       5,805       5,705                +100

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Equivalent

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40 Kgs           6,055      130       6,210       6,103                +107

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