Trading activity improved on the cotton market on Friday on betterment in the electricity supply in Punjab, dealers said. The official spot rate resisted further decline at Rs 6,650, they said. Rates of seed cotton in Sindh were unchanged at Rs 1,800 and Rs 2,400, while in Punjab prices showed no change at Rs 1,800 and Rs 2,500, they said.
In the ready business, nearly 7,000 bales of cotton changed hands between Rs 6,200 and Rs 7,000, they said. Commenting on the improvement in the volume of daily-intake, cotton analyst, Naseem Usman said that was an encouraging factor and might provide exporters an opportunity to meet export orders on time. Other brokers were of the view that massive power shortage was giving tough time and financial losses. They said, on the one hand exporters were facing tough competition in the world market due to recession, while on the other hand local problems were causing hardship for the businessmen owing to governments' unfriendly policies in the country.
According to the Reuters, ICE cotton fell over one percent on Thursday with speculators liquidating long positions as news that China's state reserve will sell some of its massive reserve offset robust weekly export sales data. While a sale this month was expected, traders fear it may dampen demand for foreign fibre from mills in the world's No 1 textile market. The most-active July futures contract on ICE Futures US settled 1.4 percent lower at 85.40 cents per lb, hovering close to six-week lows hit a day earlier.
The following deals were reported: 400 bales from Mehrab Pur at Rs 6,400, 800 bales of cotton from Bahawal Pur at Rs 6,200-6,250, 200 bales from Faqir Wali at Rs 6,200, 200 bales from Multan at Rs 6,200, 1,257 bales from Chichawatni at Rs 6,325, 200 bales from Mian wali at Rs 6,350, 102 bales from Burewala at Rs 6,400, 400 bales from Shujabad at Rs 6,500, 200 bales from Yazman Mandi at Rs 6,500, 1,130 bales from Shah Jewan at Rs 6,750, 600 bales from Burewala (Credit) at Rs 6,800, 1,000 bales from Khan Pur (Condition) at Rs 6,950 and 1,000 bales from Sadiqabad (Condition) at Rs 7,000, 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 18.04.2013
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37.324 Kgs 6,650 155 6,805 6,805 NIL
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Equivalent
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40 Kgs 7,127 155 7,282 7,282 NIL
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