Subdued business was seen on the cotton market on Tuesday as buyers became inactive due to falling demand by the importing countries, dealers said. Official spot rate was unchanged at Rs 5,600, they added. In ready business only 400 bales of cotton changed hands between Rs 5200-5600, they said.
Market sources said that in the absence of encouraging news, mills and spinners were looking upset. They said that the sellers and exporters were disappointed as they have huge unsold stock, which is proving non-profitable business for them. As a result of world recession, the cotton traders are unwillingly away from the normal business, China, who imported huge quantity of cotton to meet its consumptions, is avoiding to buy cotton from other countries due to falling demand in the local market, analysts said. In the local market, the buyers were more lethargic partly because of closure of the New York cotton market, they added. The following deals were reported: 200 bales of cotton from Ghotki sold at Rs 5600 and same number from Bahawalpur at Rs 5200, 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 28.05.2012
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37.324 Kgs 5,600 130 5,730 5,730 NIL
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Equivalent
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40 Kgs 6,002 130 6,132 6,132 NIL
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