Activity came down on the cotton market on Saturday on steady arrivals of phutti according to the Pakistan Cotton Ginners Association (PCGA) fortnightly report, dealers said. The official spot rate was unchanged at Rs 3550. Transactions showed drastic cut as ginners raised asking prices despite the increase in the Phutti arrivals, approximately 20,000 bales changed hands between Rs 3590-3625, they said.
Phutti prices in Sindh fell by Rs 25 to Rs 1675-1700 and in Punjab, the rate were down by Rs 25-50 to Rs 1700-1725, they added. Market sources said that it was expected that the phutti arrivals figure will show significant improvement in the PCGA fortnightly report.
According to the figure released by the PCGA fortnightly report up to September 30, a total of 3.8 million bales arrived at the ginneries, showing an increase of above 7 lac bales against the last year figure at 2.3 million bales till the corresponding period. Other big factor is quality, if the cotton quality is best, it may help in stabilising the rates, in other words the ginners will face hard days if quality is not good, some analysts said.
On Friday, the NY cotton futures finished lower Friday on follow-through investor liquidation as the market seems poised to test key support at the bottom of its trading band, brokers said. The December cotton contract lost 0.68 cent to settle at 60.66 cents per lb, trading from 60.59 to 61.99 cents. December contract volume reached 6,703 lots at 2:40 pm EDT (1840 GMT). March cotton fell 0.45 cent to end at 63.11 cents, dealing from 62.92 to 64.22 cents.
THE FOLLOWING DEALS WERE REPORTED: 1000 bales of cotton from Hyderabad sold at Rs 3600, 6000 bales from Shadadpur at Rs 3600, 3000 bales from Tando Adam at Rs 3600, 3000 bales from Sanghar at Rs 3600, 2000 bales from Nawabshah at Rs 3600, 600 bales from Hala at Rs 3600, 1500 bales from Upper Sindh at Rs 3600, 400 bales from Faqirwali at Rs 3625, 200 bales from Mianwali at Rs 3625, 400 bales from Jam Pur at Rs 3600, 400 bales from Khanewal at Rs 3600, 200 bales from Mongi Bali at Rs 3600, 200 bales from Muridwala at Rs 3600, 400 bales from Rahimyar Khan at Rs 3600, 400 bales from Rajan Pur at Rs 3600, 400 bales from Mian Channu at Rs 3600 and 400 bales from Gojra at Rs 3590.
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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 3,550.00 100 3,650.00
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Equivalent
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40 Kgs 3,805.00 100 3,905.00
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