Subdued business was seen on the cotton market on Saturday as mills kept on the sidelines in anticipation of more decline in the rates, dealers said. The official spot rate was unchanged at Rs 3400, they said. The phutti prices in both the Punjab and Sindh were lower at Rs 1600-1700. In the ready business highest rate was at Rs 3400, they added.
According to the market sources the overall outlook for economic growth of the country is not very encouraging, which is main concern for the investors and exporters, as well. Under the circumstances when nearly the whole world is facing recession like situation, the textile industry is also in crisis despite the expectations for rise in the export in the coming days, they said.
Financial crisis is the basic problem now-a-days along with other gas and electricity issues for all businessmen or investors, they said. In the meantime, reports appeared that the cotton crop production is provisionally estimated at 12.1 million bales for the current (2008-09), as against last season production of 11.6 million bales showing an increase of 4.3 percent.
On Friday, the NY cotton futures settled at their lowest level in two months on follow-through investor sales but suspected consumer buying pared losses ahead of a holiday break, brokers said. The key March cotton contract dropped 1.25 cents to end at 45.22 cents per lb, trading from 45.06 to 46.59 cents. It was the lowest close for cotton on a spot basis since early December 2008. Volume traded in the May contract was at 11,005 lots at 2:42 pm EST (1942 GMT). The spot March contract lost 1.00 cent to end at 44.03 cents.
The following deals were reported: 1000 bales of cotton from Sadiqabad sold at Rs 3385, same figure from Fazilpur at Rs 3400, 400 bales from Noor Pur at Rs 3325, 400 bales from Bahawalpur at Rs 3400 and same figure from Fazil Pur at Rs 3350, 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"
MICRONAIRE VALUE BETWEEN 3.8 TO 4.9 NCL
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Rate Ex-Gin Upcountry Spot Rate Ex-Karachi
for Price Sales Tax @ 15%
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37.324 Kgs 3,400.00 100 3,500.00
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Equivalent
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40 Kgs 3,644.00 100 3,744.00
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