Trading activity improved on the cotton market on Thursday as mills showed fresh interest in buying at their psychological levels, dealers said. Official spot rate stayed put at Rs 5,575, they said. In the ready business, around 28,000 bales of cotton changed hands between Rs 5475-5800, they said. In the Punjab and Sindh prices of seed cotton of best type down by Rs 50 to Rs 2500-26500, they said.
Commenting on the latest development on the cotton business, Naseem Usman said that phutti arrivals accelerated, which forced ginners to sell seed cotton to at the lower rates. Under the weak economic scenario, the whole world is under pressure, particularly, traders are worried about returns on their investments, they said.
The ginners were reluctant in selling the good quality of cotton at the cheaper rates, trying to hold back the stock to raise prices, other analysts said. According to the Reuters, the NY cotton futures ended a tad higher in quiet trade on Wednesday, as investors stayed on the sidelines awaiting trading cues from a US government monthly crop report.
New York cotton for December delivery inched up 0.26 cent to settle at 72.10 cents per lb on ICE Futures US, with trading volume at 40 percent below its 250-day average, preliminary Reuters data showed. The benchmark contract traded in a range from 71.66-72.31 cents, finding resistance just above its 100-day moving average at 72.36 cents.
The following deals reported: 3400 bales of cotton from Shahdad Pur sold at Rs 5600-5675, 2200 bales from Tando Adam at Rs 5600-at Rs 5650, 3000 bales from Sanghar at Rs 5575-5600, 2000 bales from Mir Pur Khas at Rs 5550-5600, 3000 bales from Khair Pur at Rs 5750-5800, 600 bales from Upper Sindh at Rs 5750-5800, 800 bales from Vehari at Rs 5475-5600, 200 bales from Chaniot at Rs 5475, 400 bales from Chichawatni at Rs 5500/5700, 600 bales from Sahiwal at Rs 5500/5650, 600 bales from Hasil Pur at Rs 5500/5600, 20 bales from Multan at Rs 5500, 400 bales from Burewala at Rs 5550-5600, 600 bales from Khanewal at Rs 5600, 200 bales from Qabola at 5600, 200 bales from Kabbir Wala at Rs 5600, 400 bales from Bahawal Nagar at Rs 5600, 800 bales from Bahawal Pur at Rs 5625, 200 bales from Pak Pattan at Rs 5650, 800 bales from Tonsa Sharif at Rs 5650, 400 bales from Shehar Sultan at Rs 5650, 200 bales from Mian Chano at Rs 5700, 2200 bales from Fazil Pur at Rs 5700-5800, 1200 bales from Mian Wali at Rs 5700/5800, 2000 bales from Rajan Pur 5800 and 1200 bales from Haroonabad at Rs 5800, 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 10.10.2012
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37.324 Kgs 5,575 155 5,730 5,730 NIL
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Equivalent
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40 Kgs 5,975 155 6,130 6,130 NIL
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