Despite the fact that India allowed its exporters to sell cotton, rates were stable on the domestic cotton market on Monday, dealers said. The Karachi Cotton Association (KCA) official spot rate was unchanged at Rs 5,500, they said.
In Sindh, seedcotton prices were higher by Rs 100-50 to Rs 2400-2500 and in Punjab rates were at Rs 2400-2600, they said. In the ready business trading activity was strong as nearly, 11,000 bales of cotton changed hands between Rs 5,300-5700 dealers added.
According to the market sources buyers were little active as prices were matching with their psychological levels and it is likely that rate may not fluctuate sharply in the coming days. One factor is noticeable that India is offering cotton, if prices are reasonable for the buyers, may attract overseas buyers and this factor likely to affect the prices trend in the local market, they added.
India, the world's second biggest grower and exporter of cotton, has allowed unrestricted exports of the fibre for the remainder of the current season, due to abundant availability of stocks, the Press Trust of India reported, quoting government official.
The following deals were reported: 1800 bales of cotton from Shahdad Pur sold at Rs 5400, 1000 bales of cotton from Sanghar at Rs 5400, 1000 bales from Mir ur Khas at Rs 5300-5400, 1000 bales from Tando Adam at Rs 5400, 200 bales from Tando Muhammad Khan at Rs 5400, 800 bales from Hyderabad at Rs 5400, 400 bales from Golarchi at Rs 5300-5400, 800 bales from Chichawatni at Rs 5400-5600, 600 bales from Mian Chunnun at Rs 5500, 400 bales from Vehari at Rs 5500, 400 bales from Lodhran at Rs 5600, 800 bales from Burewala at Rs 5600, 800 bales from Khanewal at Rs 5600-5700, 600 bales from Sahiwal at Rs 5400-5500, 600 bales from Arif Wala at Rs 5500-5600, 400 bales from Bahawal Nagar at Rs 5600 and 400 bales from Bahawal Pur at Rs 5600.
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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 30.07.2011
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37.324 Kgs 5,500 130 5,630 5,620 + 10
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Equivalent
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40 Kgs 5,894 130 6,024 6,014 + 10
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