Spot rate resisted a sharp decline on the cotton market on Friday amid strong buying by mills, dealers said. Official spot rate managed to minimise its fall, dropping Rs 50 more to Rs 5,200, they said. In the ready business, over 18000 bales of cotton changed hands between Rs 4900-5300, they said.
Prices of seedcotton of low types in Sindh and the Punjab improved due to quality factor, gaining Rs 100 to Rs 1800 and the best type picked up the same amount to Rs 2400, they added. Some brokers said that prices of rain-affected cotton came down and on the other hand, the mills were trying to avoid buying of inferior type as they were getting better quality at the higher rate.
It is most likely that prices may depict softness as a result of rising trend phutti arrivals, cotton analyst Naseem Usmand said. According to the Reuters, Cotton broke a five-day losing streak on Thursday on technical buying and short covering after fiber prices hit two-month lows.
After flirting with the psychologically key 70-cent mark and hitting its lowest level since August 2 in morning trade, prices bounced back garnering strength from a recovery in the euro. New York cotton for December delivery settled up 0.51 cent, or 0.72 percent, at 71.53 cents per lb on ICE Futures US. Volumes were healthier than recent averages at 16,635 lots but still almost a quarter below the 250-day moving average, with many investors staying on the sidelines waiting to see if prices test 70 cents which traders said could unleash a fresh round of spec selling.
The following deals reported: 2000 bales of cotton from Shahdad Pur at Rs 5200, 1800 bales from Sanghar at Rs 5150/5200, 2000 bales from Tando Adam at Rs 5200, 2000 bales from Mir Pur Khas at Rs 5100-5200, 400 bales from Nawab Shah at Rs 5200, 600 bales from Haroonabad at Rs 4900-5300, 400 bales from Hasil Pur at Rs 4900/5200, 600 bales from Pak Pattan at Rs 4900, 600 bales from Burewala at Rs 5000-5225, 200 bales from Mian Chano at Rs 5100, 200 bales from Mamu Kanjan at Rs 5100, 200 bales from Kasso Wal at Rs 5200, 400 bales from Arif Wala at Rs 5200, 200 bales from Kabbir Wala at Rs 5200, 1000 bales from Faqir Wali at Rs 5200-5300, 400 bales from Bahawal Pur at Rs 5250, 600 bales from Fort Abbas at Rs 5300 and 200 bales from Kichi Wala at Rs 5300, 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 27.09.2012
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37.324 Kgs 5,200 155 5,355 5,405 -50
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Equivalent
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40 Kgs 5,573 155 5,728 5,781 -53
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