Cautious mills' buying was again witnessed on the cotton market on Saturday amid expectations for improvement in phutti arrivals, dealers said. Official spot rate was unchanged at Rs 5,550, they said. In the ready business, over 7000 bales of cotton changed hands between Rs 5500-5650, they said. Prices of seedcotton in Sindh and the Punjab were unchanged at Rs 1600-2300, they added.
Some brokers said mills and spinners were not so much keen fresh buying of cotton following the expectations for further improvement in supply and quality. In the meantime, if foreign buying improves, which looks very difficult in the near future, prices may depict upward, otherwise, rates likely to come down because monsoon rains were beneficial for the current cotton production, cotton analyst, Naseem Usman said.
According to the Reuters, the US cotton closed down on Thursday as investors took profits from a market that has been more resilient than many commodities this week amid bearish economic sentiment. New York-traded cotton for December delivery settled down 1.19 cents, or 1.6 percent, at 75.22 cents per lb on ICE Futures US, after moving between 76.40 and 75.05 cents. It was the sharpest fall for the contract since September 12. Trading was, however, lighter than usual, with Thomson Reuters data showing volume in ICE cotton at 23 percent below the 30-day norm.
On Friday, the US cotton closed down for both the session and week as bearish sentiment overcame a market that initially resisted this week's sell-off in commodities. New York-traded cotton for December delivery settled down 1.97 cents, or 2.6 percent, at 73.25 cents per lb on ICE Futures US, after moving between 73.14 and 75.65 cents. It was the sharpest fall for the contract in day since August 13. For the week, December cotton fell 3.4 percent.
The following deals reported: 800 bales of cotton from Shahdadpur at Rs 5600, 600 bales from Sanghar, 500 bales from Tando Adam, 400 bales from Hyderabad, same figure from Nawabshah, 200 bales from Qaziabad finalised at the same rate, 600 bales from Mirpur at Rs 5500 and 3000 bales from Punjab stations sold between Rs 5500-5650, they said.
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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 19.09.2012
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37.324 Kgs 5,550 155 5,705 5,705 NIL
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Equivalent
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40 Kgs 5,948 155 6,103 6,103 NIL
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