Cautious mills buying was seen on the cotton market on Monday as buyers adopted wait-and-see attitude ahead of Indian next cotton strategy, expected on Tuesday, dealers said. The Karachi Cotton Association (KCA) spot rate was unchanged at Rs 9800, they said.
Seed cotton prices in Sindh and Punjab were unchanged at Rs 3,900-4,550, they said. In ready business nearly 7000 bales of cotton changed hand between Rs 9,700-10,000, they added. According to the market sources, mills are on the sidelines ahead of next Indian strategy regarding exports of cotton, which is likely to be announced on Tuesday.
Some of the mills were hoping that the NY cotton market may open on soft note but it started on bullish trend, so they decided to keep on the sidelines just to observe the latest development, they said. The ginners, however, not worried as unsold stock is not enough to meet the demand and on the other hand, it is an open indication that prices may go up in the coming days, they said.
The following deals were reported : 600 bales of cotton from Upper Sindh sold at Rs 9900-10000, 400 bales of cotton from Bakkhar at Rs 9700, 200 bales of cotton from Layyah at Rs 9700, 800 bales of cotton from Tounsa Sharif at Rs 9750/9800, 200 bales from Muhammad Pur at Rs 9800, 400 bales from Shadan Lund at Rs 9800, 400 bales from Ali Pur at Rs 9850, 200 bales from Shehar Sultan at Rs 9900, 400 bales from Sadiqabad at Rs 9900, 800 bales from Rahim Yar Khan at Rs 10000 and 1800 bales from Khan Pur at Rs 10000.

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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 08.01.2011
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37.324 Kgs        9,800       120        9,920         9,920            NIL
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Equivalent
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40 Kgs           10,503       120       10,623        10,623            NIL
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