A wait-and-see attitude adopted by the buyers on the cotton market at the week-end, dealers said. The official spot rate was unchanged at Rs 6,400, they said, adding in the ready business, 1,400 bales of cotton changed hand between 5800-6300.
According to the market sources, no change was seen in the present outlook in the cotton business as both millers and spinners most of the time kept on the sidelines in the process of trading. Other experts attributed the fall in activity to lack of buying interest among the buyers because of non-availability of necessities.
Needy buyers were taking slight interest in fresh purchasing but most of them preferred to be sidelines ahead of announcement of the federal Budget 2013-14. In contrast, many retailers in the country were trying to hoard commodities and other products ahead of Holy month of Ramazan and budget announcement, they added.
The people particularly from the middle class are expecting that prices may not rise sharply after the setup of the new government, they also hoping the new economic managers to take strict measures to bring the economy on track and they will take interest also in keeping rates of essentials at a certain level in days to come. "We are hoping that the business may improve in the coming days and the ginners expectedly would face no losses," cotton analyst Naseem Usman said. According to the Reuters, ICE cotton fell for a fifth straight session on Friday in its longest string of losses since September, pressured by investor selling and rain forecasts that eased supply concerns in the United States, the world's top exporter, dealers said.
The most-active July cotton contract on ICE Futures US edged down 0.29 cent, or 0.4 percent, to settle at 81.49 cents per pound. The front-month contract closed down each day this week, its longest string of losses since September. ICE Futures US agricultural markets will be closed for the Memorial Day holiday on Monday, and will reopen for regular trade on May 28. The following deals reported: 400 bales from Mirpur Khas at Rs 5,800, 200 bales from Nawab Shah at Rs 6,250, 600 bales (exporter to mill) at Rs 6,300 and 200 bales Ahmed Pur at the same rate, dealers 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 24.05.2013
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37.324 Kgs 6,400 155 6,555 6,555 NIL
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Equivalent
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40 Kgs 6,859 155 7,014 7,014 NIL
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