Mills and spinners were active on the cotton market on Saturday in process trading, dealers said. Official spot rate was unchanged at Rs 5850, they said. In the ready business nearly 15,000 bales of cotton changed hands between Rs 5900-6100, they said. The prices of seedcotton in Sindh were at Rs 2500-2600 and in the Punjab rates were unchanged at Rs 2600-2650, they added.
Naseem Usman said that tight supply of phutti pushed the rates up on rising demand by mills and spinners, in the meantime, phutti picking operation may gain pace after Eid holidays. NY cotton futures came down sharply, so, it is most likely that prices may come down in the near futures. There are little signs of monsoon rains in both Sindh and Punjab persisted, which is good for the standing crop, they said.
According to the Reuters, the NY cotton prices slumped more than two percent on Friday as the market braced for the possible sale of a large portion of Chinese state reserves. Notching up its largest one-day drop since the last US government supply-and-demand report stoked concerns about a growing surplus, the benchmark December cotton contract on ICE Futures US slumped 2.1 percent to settle at 75.21 cents per lb. Volume drifted lower on Friday to around 11,600 lots, half the 30-day average and much lower than the liquidity earlier in the week when speculative investors were back.
The following deals were reported: 2000 bales of cotton from Shahdad Pur sold at Rs 5900-5925, 3000 bales of cotton from Sanghar at the same rate, 2000 bales of cotton from Mir pur Khas at Rs 5900,800 bales of cotton from Hyderabad at the same rate, 2000 bales of cotton from Tando Adam at Rs 5900-5925, 1200 bales of cotton from Kotri at the same rate, 400 bales of cotton from Khado at Rs 5900, 600 bales of cotton from Shah Pur Chakar at the same rate, 200 bales of cotton from Bahawal Nagar at Rs 5900, 400 bales of cotton from Bhawal Pur at the same rate, 400 bales of cotton from Mongi Bangla at Rs 6000, 600 bales of cotton from Burewala at Rs 6000-6050, same figure from Khanewal at Rs 6000-6100, 200 bales of cotton from Mian Chunnu at Rs 6100, 400 bales of cotton from Hasil Pur at the same rate, same number from Kabir Wala at the same rate.
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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 24.08.2012
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37.324 Kgs 5,850 155 6,005 6,005 NIL
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Equivalent
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40 Kgs 6,269 155 6,424 6,424 NIL
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