Prices were again on upward march on the cotton market on Tuesday as exporters entered the market to make forward buying, dealers said. The official spot rate was unchanged at Rs 3600, brokers said. In the ready business over 25,000 bales of cotton changed hands between Rs 3625-3700.
Phutti prices in Sindh were same at Rs 1725-1750 and in Punjab were at Rs 1750-1775, they added. Market sources said that exporters re-entered the market which caused sharp increase in the prices. It is surprising to note that after the better production for the current season and easier trend in the NY cotton market, the rates are on the upward move but it seems that the direction may change in the coming days, they said.
There were speculations early about the damage of crop after the pest attack in the Punjab but now it seems that damage was below the estimations, they said. On Monday the NY cotton futures fell sharply, with much of the volume coming at the end, as brokers said the fibre contracts were precariously high based on fundamental factors and were due for a correction.
Last Thursday the December contract rose to its highest level since early September 2008 as speculators brushed aside cotton fundamentals like light export sales and high warehouse stocks while some of last year's crop goes unsold. The December cotton contract lost 1.74 cents to settle at 66.47 cents per lb, ranging from 66.35 to 68.92 cents.
December contract volume reached 13,905 lots by 2:56 pm EDT (1856 GMT). March cotton fell 1.41 cents to end at 68.97 cents, in a trading band between 68.87 and 71.07 cents.
The following deals were reported: 2000 bales of cotton from Shahdad Pur sold at Rs 3625-3650,4000 bales from Tando Adam at Rs 3625-3650, 1000 bales from Sanghar at Rs 3625,500 bales from Nawabshah at Rs 3625, 2000 bales from Mir Pur Khas and Sultanabad at Rs 3625,1000 bales from KhairPur at Rs 3650-3675, 1000 bales from Upper Sindh at Rs 3700, 1000 bales from Rajan pur at Rs 3675-3700, 1000 bales from Fazal Pur at Rs 3675-3700, 600 bales from Mian Channu at Rs 3650, 400 bales from Burewala at Rs 3650, 3000 bales from Bahawal Pur at Rs 3650, 1000 bales from Ahmed Pur at Rs 3650, 4000 bales from Rahim Yar Khan at Rs 3700, 1600 bales from Haroonabad at Rs 3650 and 1000 bales from Sadiqabad at Rs 3700.
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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 3,600.00 100 3,700.00
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Equivalent
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40 Kgs 3,858.00 100 3,958.00
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