Spot rate drifted lower on the cotton market on Saturday as phutti arrivals accelerated into the ginneries, dealers said. Official spot rate was down by Rs 50 to Rs 5600, they said. In the ready business, over 4000 bales of cotton changed hands between Rs 5600-5750, they said. Prices of seedcotton in Sindh and the Punjab were at Rs 1800-2300 and in the Punjab rates were at Rs 2000-2400, they added.
Market sources said that mills were active but trying to avoid wet cotton because of quality factor, in the meantime, the ginners were trying to sell old stock as picking operation started with full swinging as rains almost stopped in the cotton belt. Not so much change seen in the exports of textile items due to bleak economic condition of the globe, but China is keenly buying cotton yarn, which may help in improving the foreign exchange earnings in the coming days, cotton analyst, Naseem Usman said.
According to the Reuters, the NY cotton futures in New York closed up for a second straight day on Friday, staging their best rally in three weeks, as the Federal Reserve's third stimulus action for the US economy boosted it and a number of other commodity markets. Cotton's benchmark December contract in New York settled up 2.37 cents, or 3.2 percent, at 75.90 cents per lb, moving between 73.53 and 75.95. Cotton's benchmark December contract in New York settled up 2.37 cents, or 3.2 percent, at 75.90 cents per lb, moving between 73.53 and 75.95.
The following deals reported: 200 bales of cotton from Mir Pur Khas at Rs 5600, 400 bales from Tando Adam at Rs 5650, 800 bales from Bahawal Pur at Rs 5600, 200 bales from Gaggo Mandi at Rs 5600, 200 bales from Tiba Sultan Pur at Rs 5600, 200 bales from Arif Wala at Rs 5600, 600 bales from Burewala at Rs 5600/5675, 200 bales from Vehari at Rs 5600, 200 bales from Chichawatni at Rs 5625, 200 bales from Mian Chano 5625, 400 bales from Khanewal at Rs 5750, 400 bales from Jhang at Rs 5750, 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 14.09.2012
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37.324 Kgs 5,600 130 5,755 5,805 -50
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Equivalent
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40 Kgs 6,002 130 6,157 6,210 -53
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