Stability was seen on the cotton market on Wednesday in process of modest trading, dealers said. Official spot rate was unchanged at Rs 5,600, they added. In ready business, only 1400 bales of cotton changed hands between Rs 5400-5650, they said.
The local exporters, after getting poor response from the European countries, selling cotton to the mills, they said and adding that prices are firm in India, but it is difficult to say that India to enter the local market as a buyer. Naseem Usman said that cotton sowing continued with full swing and it is expected that the country may achieve target of 16 million of cotton next year. In the cotton belt there are some problems of irrigation water, he said and adding that the government should solve the issue, as early as possible because cotton growers were facing difficulties in the absence of proper supply of water.
The new cotton arrivals are expected at the end of July, but the sunny and so hot weather may hurt the quality of cotton, brokers said. Cotton futures settled mixed Tuesday in two-way speculative business after the market's early rebound after a holiday weekend fizzled out, brokers said. The market was closed Monday for US Memorial Day.
Benchmark July cotton on the ICE Futures US exchange fell 0.82 cent, or 1.1 percent, to end at 72.80 cents per lb after ranging from 72.45 to 75.33 cents. Last Wednesday, the contract ended at 71.51 cents in the lowest settlement for the spot cotton contract since early February 2010, according to Thomson Reuters data. Volume on Tuesday reached slightly over 26,500 lots, 10 percent over the 30-day norm, Thomson Reuters data showed.
The following deals were reported, 200 bales of cotton from Caror Pacca at Rs 5400, same number from Qaboola at Rs 550, 800 bales from Sadiqabad at Rs 5500 and more 200 bales from Bahawalpur at Rs 5650, 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 29.05.2012
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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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