Lacklustre condition was seen on the cotton market on Saturday as commercial centres kept the shutters down due to strike to mourn the killing of 25 people in two separate bomb explosions on Friday, dealers said. The Karachi Cotton Association (KCA) did not issue rates, so the official spot rate was at Rs 4,625. Phutti prices in both the Punjab and Sindh were same at Rs 2050-2350, they added.
On the upcountry centres some businesses was seen as most of the leading buyers were on the sidelines due to higher rates, they said. In addition, some foreign analysts said on Friday that the US Agriculture Department (USDA) monthly supply report next week could see changes in US cotton exports for 2009/10 and possible decline in world production.
The data will be handed out on Tuesday at 8:30 am EST (1330 GMT). "The biggest controversy with next week's report is whether exports are increased or not," Sharon Johnson, cotton expert for First Capitol Group in Atlanta, Georgia, wrote in a report.
On Thursday, the NY cotton futures stumbled to a weak close on all-around sales as the strong dollar and the horrid performance of outside markets deflated fibre contracts, analysts said. The key March cotton contract fell 0.83 cent to finish at 68.99 cents per lb, moving from 68.21 to 70.05 cents. Volume traded in the March contract hit 10,586 lots at 2:35 pm EST (1935 GMT).
On Friday, the NY cotton futures reeled from investment liquidation to end at a 12-week low caused by falling outside market and the poor tone of fibre contract may lead to further losses next week, analysts said. The key March cotton contract fell 2.37 cents to conclude at 66.62 cents per lb, moving from 66.55 to 69.38 cents. It was the lowest finish for cotton since the middle of November when it was trading below 66.50 cents.
Since trading as high as 76.77 cents on January 4, 2010, the benchmark cotton contract hit a session low of 66.55 cents on Friday. That represented a fall of 13.31 percent in value between January 4 and February 5. Volume traded in the March contract hit 24,345 lots at 2:38 pm EST (1938 GMT).
The following deals were reported: 200 bales of cotton from Sanghar sold at Rs 4700 and 400 bales from Shahdadpur at the same rate.
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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 4,625.00 100 4,725.00
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Equivalent
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40 Kgs 4,957.00 100 5,057.00
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