The ginners refrained from panic selling due to sharp fall in the NY futures, dealers said on the cotton market on Friday. The official spot rate was unchanged at Rs 5,050, they added. In the ready session, around 15,000 bales of cotton changed hands at Rs 4850-5250, they said. In Sindh, rates of seed cotton were firm at Rs 1800 and Rs 2552, in Punjab prices were at Rs 2300 and Rs 2650, they said.
According to the market sources, trading activity slowed down mainly because of reaching reports about bumper cotton production in the producing countries. Cotton analyst Naseem Usman said that it's hard time for the growers and ginners as their hopes faded after the dip in the NY cotton futures. Recently, the Trading Corporation of Pakistan (TCP)'s operation caused great relief among the cotton traders, he said, adding that but now the situation is different because of declining trend in the rates. Under the situation, spinners and exporters were restricted their business activity, only making deals to meet their needs, other brokers said. In the meantime, analysts said that gas supply would be ensured for the textile mills, which hopefully, bring up the volume of business in times to come, they added.
Reuters adds: Cotton futures dropped to the lowest levels since September 2009 on Thursday, tumbling through the key psychological 60-cent level as it extended a rout on a bearish technical outlook and weak demand as harvesting ramps up in key producers. The most-active December cotton contract on ICE Futures US dropped as low as 58.73 cents a lb and was down 1.59 cents, or 2.6 percent, at 58.75 cents by 12:48 pm EDT (1748 GMT).
The following deals reported: 3000 bales of cotton from Khairpur at Rs 4850-4950, 1000 bales from Haroonabad at Rs 5050-5100, 200 bales from Multan at Rs 5100, 400 bales from Vehari at Rs 5100, 200 bales from Pak Pattan at Rs 5125, 600 bales from Chichawatni at Rs 5125, 400 bales from Gojra at Rs 5150, 400 bales from Kabirwala at Rs 5150, 800 bales from Burewala at Rs 5150, 600 bales from Khanewal at Rs 5150, 200 bales from Bakhar at Rs 5165, 400 bales from Fort Abbas at Rs 5175, 600 bales from Fazilpur at Rs 5200, 1000 bales from Rahim Yar Khan at Rs 5200, 800 bales from Rajanpur at Rs 5200, 600 bales from Yazman Mandi at Rs 5200, 400 bales from Chistian at Rs 5200, 1000 bales from Alipur at Rs 5200-5250, 400 bales from Layyah at Rs 5250, 600 bales from Dera Ghazi Khan at Rs 5250 and 1000 bales from Mianwali at Rs 5250, they added.
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The KCA Official Spot Rate for Local Dealings in Pakistan 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 13.11.2014
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37.324 Kgs 5,050 150 5,200 5,200 NIL
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Equivalent
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40 Kgs 5,412 160 5,572 5,572 NIL
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