Spot rate maintained a rising trend on the cotton market on Friday, at the same time the ginners started raising asking prices amid short supply of fine quality, dealers said. The official spot rate went up by Rs 100 to Rs 6,700, they said. Thus, showing an increase of Rs 225 in the week, dealers said. Rates of seed cotton in Sindh were unchanged at Rs 2,400-3,100 and in Punjab prices were inert at 2,300-3,300, they said.
In the ready business, the trading activity improved as approximately 13,000 bales of cotton changed hands between Rs 6,200 and Rs 7,275, they said. Commenting on the tight supply position, cotton analyst Naseem Usman said that low supply and strong demand enhanced the rate of cotton. The other factor is decline in demand on the international market after the world recession because buyers were not taking interest due to financial problem. To meet the buyers' needs, sellers are trying to make their products as much as better, analysts said. Tough competitions propelling sellers to create quality, they added.
According to the Reuters, the NY cotton declined for the first time in eight sessions on Thursday, stemming its longest series of daily gains in over a month, on a price correction in the technically-overbought market. The most-active May cotton contract on ICE Futures US slid 0.74 cent, or 0.8 percent, to settle at 86.50 cents per lb, after increasing for seven straight sessions, the longest rally since January
In the meantime, the NY cotton rose to a 10-month high in early trading on Friday ahead of the US Department of Agriculture's monthly crop report and after solid jobs data ignited hopes for strong consumer spending. The following deals were reported: 400 bales from Sanghar at Rs 6,200, 800 bales from Shahdad Pur at Rs 6,200, 1,600 bales from Rohri at Rs 6,800-6,900, 600 bales from Dehrki at Rs 7,000, 221 bales from Daran Wala at Rs 6,400, 1,000 bales from Hasil Pur at Rs 6,800, 400 bales from Mian Chano at Rs 6,900, 400 bales from Khan Pur at Rs 7,000, 1,000 bales from Jalal Pur at Rs 7,000, 1,000 bales from Rahim Yar Khan at Rs 7,000 and 3,400 bales from Mian Wali at Rs 7,000-7,200, 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 07.03.2013
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37.324 Kgs 6,700 155 6,855 6,755 +100
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Equivalent
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40 Kgs 7,180 155 7,335 7,228 +107
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