Small business was seen on the cotton market on Monday as mills and spinners kept on the sideline due to higher prices, dealers said. The official spot rate was unchanged at Rs 6,750, they said. Rates of seed cotton in Sindh were unchanged at Rs 2,400-3,100 and in the Punjab prices were inert at 2,300-3,340, they said. In the ready business, trading activity fell sharply as over 6,000 bales of cotton changed hands between Rs 6,000 and Rs 6,800, they said.
Increase in taxations was hurting business activity in the country, fibres were lying on the port as the government did not cut taxes, analysts said. Financing problem was now allowing the businessmen to do business at high cost, they added, in the meantime, the ginners were hoping prices to retain present levels in the coming days, cotton analyst Naseem Usman said.
According to Reuters, cotton prices in India, the world's second-largest producer, are likely to fall this week with traders reluctant to buy at higher prices while demand to release the stocks procured by government agencies could also add to the drop. Fresh import deals signed by Indian buyers, mainly from West Africa, to retain their competitive edge at a time when stock building and thin spot supplies have pushed domestic prices higher, are also seen weighing on the sentiment. The following deals were reported: 1,200 bales of cotton from Shadadpur at Rs 6,000-6,200, 600 bales from Sanghar at Rs 6,200, 600 bles from Mirpurkhas at Rs 6,000-6,800 and 4,000 bales from Sadiqabad at Rs 6,800, 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 08.03.2013
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37.324 Kgs 6,750 155 6,905 6,855 +50
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Equivalent
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40 Kgs 7,234 155 7,389 7,335 +54
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