Bearish sentiment was seen on the cotton market on Tuesday as phutti arrivals maintained the pace but after late evening drizzling in cotton belt of Sindh may disrupt phuttiy arrivals in the near future, dealers said. Official spot rate was lowered by Rs 50 to Rs 5800, they said.
In the ready business nearly 9,000 bales of cotton changed hands between Rs 5700-5850, they said. The prices of seedcotton in Sindh were up by Rs 100 to Rs 2525 and best type was higher by Rs 50 to Rs 2575 and in the Punjab low type fell by Rs 200 to Rs 2300 and the best quality was lower by Rs 50 to Rs 2600, they added.
Market sources said it was expected that the phutti arrivals will pick up after a break of two-week period, which caused slide in the rates, on the other hand, there is no clear sign for the traders and exporters to gain confidence to make futures deals mainly because of the weak global economic outlook. China's 2012 cotton output is estimated at 6.97 million tonnes, down 4.2 percent from last year, an industry website cited the China Cotton Association (CCA) as saying on Monday.
According to the Reuters, the NY cotton prices were higher on Monday recovering ground lost late last week as tropical storm Isaac headed towards Alabama and Mississippi, two important states in the US cotton belt. The benchmark December cotton contract on ICE Futures US rose 1.24 percent to settle at 76.14 cents per lb, just off an intraday high of 76.24. Trading volumes remained low ahead on Monday ahead of the US Labour Day holiday weekend, with just over 9,000 lots changing hands on the day
The following deals were reported: 1200 bales of cotton from Shahdad Pur sold at Rs 5725-5775, 1000 bales of cotton from Sanghar at Rs 5700-5750, same figure from Mir Pur Khas at the same rate, 800 bales of cotton from Hyderabad at the same rate, 1200 bales of cotton from Tando Adam at Rs 5725-5775, 200 bales of cotton from Mian Channo at Rs 5750, 400 bales of cotton from Bahawal Nagar at Rs 5750-5775, same figure from Haroonabad at Rs 5800, 200 bales from Mailsi at the same rate, 400 bales of cotton from Gajjo Mandi at the same rate, 200 bales of cotton from Chistaian at the same rate, same figure from Hasil pur at the same rate, 400 bales of cotton from Khanewal at Rs 5800-5850, same figure from Burewala at the same rate, 200 bales of cotton from Sahiwas at the same rate, 400 bales of cotton from Chichawatni at the same rate and 200 bales of cotton from Pak Pattan at Rs 5850.

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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 27.08.2012
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37.324 Kgs       5,800      130       5,955       6,005                 -50
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Equivalent
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40 Kgs           6,216      130       6,371       6,424                 -53
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