Steady trend was seen on the cotton market on Wednesday as mills were busy in pre-Eid buying, they said. Over 12,000 bales changed hands between Rs 3450-3575, they said. Phutti prices in Sindh were same at Rs 1680-1700 and in Punjab the rates were at Rs 1725-1750, they added.
Some brokers said that no change was seen in pace of activity as mills were trying to cover the forward buying ahead of Eid holidays. The ginners were taking good profit of margin for the best quality of cotton as the prices hit season high at Rs 3600 on Tuesday, but the rates fell slightly in process of trading, they added. Country produces 50,000 bales of cotton every day and all purchased by the mills.
In the meantime, it is most likely that the mills may take a pause after having enough cotton buying for their requirements, they said. Besides, one factor which is dominating the market is pest attack on the standing crop in Punjab. This reason may push prices higher in post Eid-holidays sessions, they said. In the meantime, rising confusions about the damage to crop is basic reason behind the strong demand by the mills, they said.
On Tuesday the NY cotton futures posted their highest close in a month, surging after the retail sales report showed healthy buying by US consumers, signalling potential for increased demand in the fiber, traders said. The December cotton contract in New York gained 0.81 cent to finish at 63.02 cents per lb, and ranged from 62.30 to 63.64 cents. Volume traded in the December contract was healthy at 12,100 lots at 3:42 pm EDT (1942 GMT). March cotton was up 0.75 cent to finish at 65.04 cents, and moved from 64.29 to 65.60 cents.
The following deals were reported: as some 1000 bales of cotton from Mirpurkhas sold at Rs 3450, 800 bales from Hyderabad at Rs 3450-3475, 1200 bales from Sanghar at Rs 3450, 2000 bales from Tando Adam at Rs 3475-3485, 3600 bales from Shahadadpur at Rs 3475, 600 bales from Burewala at Rs 3575, 400 bales from Hasil Pur at Rs 3575, 500 bales from Fort Abbas at Rs 3575, 200 bales from Faqirwali at Rs 3550, 400 bales from Sahiwal at Rs 3550, 200 bales from Kabirwala at Rs 3550, 400 bales from Haroonabad at Rs 3550, 400 bales from Mian Channu at Rs 3550 and 600 bales from Vehari at Rs 3550, 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"
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 3,450.00 100 3,550.00
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Equivalent
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40 Kgs 3,697.00 100 3,797.00
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