Official spot rate came under pressure and KCA brought it down as a result of falling daily intake by the mills and spinners, dealers said on the cotton market on Saturday. Karachi Cotton Association (KCA) official spot rate was lowered by Rs 300 to Rs 12,700, they said.
In Sindh and Punjab Phutti prices of low type were at Rs 4500 and superior stayed put at Rs 6000, they said. In ready business, nearly 1200 bales of cotton changed hands at Rs 12500-12800, they added. The mills still kept to the sideline in the absence of motivating factor. Most of the mills were hoping for decline in the prices on the international market, they said.
In the meantime cotton prices started lifting on the global market, they said. Falling trend in the rates, encouraging the cotton traders as they were expecting cheaper rates have an attraction to win competitive markets, other experts said. On Friday the US cotton futures settled higher on investor buying to end a three-day losing streak, as fiber contracts bucked early weakness in the commodities sector from the massive quake in Japan, analysts said. The key May cotton contract on ICE Futures US rose 3.96 cents to finish at $2.0494 per lb, trading from $1.966 to $2.0798.
On the week, the market was down 3.65 percent. It was the first weekly loss for cotton futures in 9 weeks. Traders said activity was dominated by technical considerations. The market's session low of $1.966 is roughly the 50 percent correction in the market from the February 25 low of $1.7815 to the Monday top of $2.197. The following deals were reported : some 200 bales of cotton from Khairpur sold at Rs 12800 and 1000 bales of cotton from Haroonabad sold at Rs 12500.
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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 11.03.2011
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37.324 Kgs 12,700 120 12,820 13,120 -300
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Equivalent
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40 Kgs 13,611 120 13,731 14,052 -321
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