Traders were worried after imposition of fresh tax measures, in the meantime activity improved as prices came down in sympathy with the international track, dealers said on the cotton market on Wednesday. Karachi Cotton Association (KCA) official spot rate was lowered by Rs 200 to Rs 12,500, they said.
In Sindh and Punjab phutti price of low type was at Rs 4500 and superior type dropped by Rs 300 to Rs 5200, they said. In ready business, some 2,600 bales of cotton changed hands at Rs 11000-12800, they added. According to the market sources, traders were busy in exchange of views over impacts of the introduction of GST.
The textile industry is already facing many problems due to higher rates of cotton as a result of short of demand production, they said. Some buyers finalised the deals because rates matching with their psychological levels, they said. On Tuesday the US cotton futures finished limit down for the second straight session as fears over Japan's disasters and nuclear crisis on the global economy took their toll on fibre, analysts said. The key May cotton contract on ICE Futures US dropped its seven-cent limit to finish at $1.9094 per lb, with the session top at $1.9957.
Last week, the market lost 3.7 percent, the first weekly loss for cotton futures in nine weeks. Volume traded stood at 18,000 lots, over 50 percent above the 30-day norm, Thomson Reuters preliminary data showed.
The following deals were reported: some 400 bales of cotton from Sanghar sold at Rs 11000, same figure from Shahdadpur at the same rates, same figure from Mirpur Khas at the equal amount, 200 bales from Tando Jan Mohd at Rs 12600, 200 bales from Rassolabad at Rs 12800, 400 bales from Saleh Pat at Rs 1200, same figure from Lodhran at the same rate and 200 bales from Yazman Mandi at Rs 12000, they said.
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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 15.03.2011
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37.324 Kgs 12,500 120 12,620 12,820 -200
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Equivalent
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40 Kgs 13,396 120 13,516 13,731 -215
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