In the absence of strong demand, the volume of business was very low on the cotton market on Monday, dealers said. The Karachi Cotton Association (KCA), official spot rate was inert at Rs 5250, they said. Prices of seedcotton in Sindh were at Rs 1700-2300 and in the Punjab at Rs 1800-2600, they said. In the daily business nearly 3000 bales of cotton changed hands between Rs 4200-5500, they added.
According to the market sources, it is dullness in the global market, which failed to improve trade volume in the local market. It is unlikely that business activity may lift from the current level in the absence of motivating factors, both leading economies of the world, such as India and China were on the sidelines just to keep a watch over the fresh developments and also because of lack of buying interest, the said.
The Pakistan Cotton Ginners Association (PCGA), issued the fortnightly report till March 15 2012, which is at 14.6 million bales, Naseem Usman said. He said that most of the cotton traders were fed up with the persistent of lethargic condition in the market and how far it will last is very difficult to say. The following deals were reported: 800 bales of cotton from Shanghar sold at Rs 4200, 200 bales of cotton from Mir Pur Khas at Rs 4500 and 2000 bales from Rahim Yar Khan at Rs 5500.
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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 16.03.2012
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37.324 Kgs 5,250 130 5,380 5,380 NIL
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Equivalent
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40 Kgs 5,626 130 5,756 5,756 NIL
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