Rates recovered slightly on the cotton market on Tuesday in the process of trading, dealers said. The official spot rate was unchanged at Rs 6900, they added. Prices of seed cotton in Sindh per 40 kg low type were unchanged at Rs 2400 and Rs 2800, in Punjab, rates maintained last levels at Rs 2400-3100, dealers said. In the ready session, around 6000 bales of cotton changed hands at Rs 5800-7000, dealers said.
Commenting on the recent dullness in the market, they said that there were higher expectations about the strong demand by China after holidays, but it could not materialised, another factor is financial problems, particularly among the traders. World recession caused fall in orders from the globe, which is continue and hurting sentiments of business as a whole.
Cotton analyst, Naseem Usman said that the lint prices Reuters adds: the New York-traded cotton futures hit four-month highs on Monday, piercing the 90-cent/lb psychological mark, after an absence of physical delivery against the front-month contract indicated supply of the fiber was even tighter than thought.
The market also saw support from the dollar's slide as news that Ukraine might receive international aid for its debt crisis reduced safe-haven bets placed on the dollar. The dollar edged lower against the so-called commodity currencies of Australia, Canada and New Zealand, bolstering commodity prices in general. The most-active May cotton contract on ICE Futures US settled up 0.84 cent, or 1.1 percent, at 89.30 cents a lb. The following deals reported as 540 bales from Mailsi at Rs 5800, 1000 bales from Bahawal Nagar at Rs 6900, 200 bales from Vehari at Rs 6900, 1000 bales from Haroonabad at Rs 6900, 1000 bales from Faqir Wali at Rs 6900, 1000 bales from Fort Abbas at Rs 6900 and 1400 bales of cotton from Rahim Yar Khan sold at Rs 7000, they added.
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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 24.02.2014
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37.324 Kgs 6,900 155 7,055 7,055 NIL
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Equivalent
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40 Kgs 7,395 155 7,550 7,550 NIL
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