Prices fell marginally on the cotton market on Thursday as picking operations accelerated despite rains in the cotton growing areas, dealers said. The Karachi Cotton Association (KCA) official spot rate was unchanged at Rs 6,000, they said. In the ready business, over 3500 bales of cotton changed hands between Rs 5700-6150, they said.
Phutti prices in Sindh were down by Rs 75 to Rs 2550-2575 and in Punjab the rates were also lower by Rs 50 to Rs 2600-2650 in process of trading they added. According to the market sources ginning factories in the Punjab were closed burig rains but picking operations continued during the rains.
It is expected that the prices may slip from the current levels due to strong arrivals and declining trend in the international markets, some analysts said. They said that next price line will depend on supply position because there were reports about the pest attack on the crop, if pest attack is massive, it will hit production.
Meanwhle it is expected the agriculture department may control the virus attack nicely and the country will be able to achieve the target, they added. On Wednesday the NY cotton futures finished firmer on investor and trade buying as the market rebounded from Tuesday's 5-1/2 month low and follow-through interest may nudge fibre contracts higher this week, brokers said.
The December cotton contract increased 0.92 cent to end at 73.93 cents per lb, moving from 73.24 to 74.48 cents. On Tuesday the contract ended at 73.01 cents in the lowest close for the second position cotton contract since February 9, according to Thomson Reuters data. Volume traded in the December contract stood at 10,872 lots at 4:00 pm EDT (2000 GMT).
The following deals were reported: 100 bales of cotton from Shahdad Pur sold at Rs 6000, 200 bales from Hyderabad at Rs 5900, 200 bales from Shahdad Pur at Rs 5900, 200 bales from Sultanabad at Rs 5900, 600 bales from Sultanabad at Rs 5800 200 bales from Sultanabad at Rs 5700, 100 bales from Tando Adam at Rs 6000, 100 bales from Tando Adam at Rs 5900, 200 bales from Sanghar at Rs 5825 200 bales from Arifwala at Rs 6150, 400 bales from Haroonabad at Rs 6100, 200 bales from Burewala at Rs 6100 400 bales from Burewala at Rs 6000, 200 bales from Burewala at Rs 5885, 200 bales from Pak Pattan at Rs 5800, 200 bales from Mian Channu at Rs 6000, 200 bales from Sahiwal at Rs 6000, 200 bales from Arifwala at Rs 6000, 200 bales from Chichawatni at Rs 5950 and 200 bales from Chichawatni at Rs 6000.
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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 6,000.00 100 6,100.00
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Equivalent
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40 Kgs 6,430.00 100 6,530.00
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