The volume of business low on the cotton market on Saturday as leading participants were on the sidelines ahead of Pakistan Cotton Ginners Association (PCGA) fortnightly report, dealers said. Official spot rate was unchanged at Rs 5,925, they said. Daily in-take curtailed as a result of less in interest by mills so, nearly 7,000 bales of cotton changed hands between Rs 5800-6100, they said.
Prices of seedcotton (phutti) in Sindh were at Rs 2650-2850, in Punjab rates were unchanged at Rs 2600-2950, they said. In fact, the ginners hanged in what do and what not to do position, because they feared that they will be losers, if they cut down prices in expectations of higher phutti arrival, some cotton experts said.
In the absence of proper supply of gas and electricity, besides, high cost of production such as irrigation water and fertilisers, they are not getting desired return and these factors ere dragging them into the unforeseen fears, cotton analyst, Naseem Usman said Mills are active but not ready to pay above the psychological level due to perception of better-than-expected production, he said.
According to the Reuters, US cotton futures closed lower on Friday, handing back a chunk of the previous day's 3-percent rally as investors locked in profits amid concerns that recent mill buying has petered out. The market was still up over 4 percent on the week after an unexpected flurry of mill buying and short covering sent prices to three-week highs on Thursday.
The most-active December cotton contract on ICE Futures US settled down 1.23 cents, or 1.66 percent, at 72.73 cents per lb after hitting an intraday low of 72.18 cents. Following deals reported: 1000 bales of cotton from Khair Pur at Rs 6000-6100, 200 bales from Gojra at Rs 5800, 200 bales from Jahanian at Rs 6000, 1400 bales from Ali Pur at Rs 6000, 200 bales from Fort Abbas at Rs 6000, 400 bales from Maroot at Rs 6000, 800 bales from Burewala at Rs 6000-6050, 1000 bales from Hasil Pur at Rs 6000-6050, 1200 bales from Yazman Mandi at Rs 6000, 200 bales from Feroza at Rs 6000, 400 bales from Khan Pur at Rs 6000, 400 bales from Haroonabad at Rs 6000-6100 and 400 bales from Faqir Wali at Rs 6100, 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 16.11.2012
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37.324 Kgs 5,925 155 6,080 6,085 NIL
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Equivalent
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40 Kgs 6,350 155 6,505 6,505 NIL
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