Prices were still on the higher side on the cotton market on Thursday during the hectic purchasing by the mills to meet the immediate needs, dealers said. The Karachi Cotton Association (KCA) spot rate was unchanged at Rs 8,800. Seed cotton prices were up in Sindh and Punjab at Rs 4100-4,350, they said.
In ready business nearly 30,000 bales of cotton changed hands between Rs 8,900-9500, they added. Some brokers said that short crop and rising demand by the mills caused surge in the rates. The ginners were also reluctant in making deals at the lower rates.
Some experts said that mills made hectic buying as on first December India has stopped registration of cotton yarn exports. This factor may cause further rise in the rate of cotton, they added. Besides, according to the report, Australia's cotton growers are boosting the area sown with the fibre to record levels in response to high prices and favourable growing conditions, an industry spokesman said on Thursday.
Australia, the world's third largest cotton exporter, could see the area planted rise by around 150 percent, according to Cotton Australia, the industry organisation that promotes Australian cotton. On Wedneday the US cotton market closed higher on end-of-the-month investor short-covering as the market ended November well below the all-time highs hit earlier in the month, although analysts said market fundamentals remained bullish.
The key March cotton contract rose 1.58 cents to end at $1.1734 per lb, dealing from $1.1376 to $1.189. The contract was down 2.58 percent on the month, its biggest monthly decline since May, Thomson Reuters preliminary data showed. Spot December rose 3.72 cents to close at $1.2623, and ended the month up 0.77 percent.
The following deals were reported : 4,500 bales of cotton from Noor Pur Noranga sold at Rs 9500, 2000 bales of cotton from Sanghar at Rs 8900/9000, 600 bales of cotton from Hyderabad at Rs 8900/9000, 1000 bales of cotton from Tando Adam at Rs 8900/9000, 800 bales of cotton from Mir Pur Khas at Rs 8900, 400 bales of cotton from Tando Allahyar at Rs 9000, 1000 bales of cotton from Shahdad Pur 9000, 1200 bales of cotton from Nawabshah at Rs 9000, 1000 bales of cotton from Khair Pur at Rs 9000/9200, 2000 bales of cotton from Upper Sindh at Rs 9000/9200, 200 bales of cotton from Faqirwali at Rs 9000, 200 bales of cotton from Multan at Rs 9000, 200 bales of cotton from Burewala at Rs 9000, 200 bales of cotton from Gojra at Rs 9000, 200 bales of cotton from Karoor Pacca at Rs 9000, 1200 bales of cotton from Dera Ghazi Khan at Rs 9000/9200, 200 bales of cotton from Rahim Yar Khan at Rs 9000, 400 bales of cotton from Fort Abbas at Rs 9000, 200 bales of cotton from Khanewal at Rs 9000, 200 bales of cotton from Chichawatni at Rs 9000, 400 bales of cotton from Haroonabad at Rs 9000, 200 bales of cotton from Lodhran at Rs 9000, 600 bales of cotton from Mian Channo at Rs 9000/9100, 3000 bales of cotton from Ali pur at Rs 9150/9300, 600 bales of cotton from Shadan Liund at Rs 9200, 1000 bales of cotton from Mianwali at Rs 9200, 600 bales of cotton from Rajan Pur at Rs 9200, 600 bales of cotton from Muhammad Pur at Rs 9200, 400 bales of cotton from Tounsa Sharif at Rs 9200, 400 bales of cotton from Tounsa Sharif at Rs 9200, 1000 bales of cotton from Khan Pur at Rs 9200, 200 bales of cotton from Jalal Pur at Rs 9200, 400 bales of cotton from Shujabad at Rs 9200, 800 bales of cotton from Liaquat Pur at Rs 9200 and 400 bales of cotton from Bahawal Pur at Rs 9300.
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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"
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MICRONAIRE VALUE BETWEEN 3.8 TO 4.9 NCL
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Rate Ex-Gin Upcountry Spot Rate Spot Rate Difference
For Price Ex-Karachi Ex. KHI. As Ex-Karachi
on 01.12.2010
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37.324 Kgs 8,800 120 8,920 8,920 Nil
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Equivalent
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40 Kgs 9,431 120 9,551 9,551 NIL
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