Business activity improved on the cotton market on Tuesday as needy mills and spinners came back to make urgent needs, dealers said. The official spot rate was unchanged at Rs 6,400, they said. In the ready business, over 5000 bales of cotton sold between Rs 5500-6900, dealers said.
Some brokers said that as millers and spinners started buying the ginners tried to raise asking prices to gain profits. Cotton analyst, Naseem Usman said that almost the whole world facing financial turmoil including Pakistan, where cotton local traders were expecting the country may achieve better-than-expected cotton production, but some other analysts said that if monsoon rains lasted for a long-time, this factor may not be favourable for the standing crop, it is before time to say something about the cotton garget for the next season.
They said that suppose, if country gets increased cotton production, alone it will not be a big thing, because textile industry is facing unfavourable circumstances due to power and gas crisis, the ginners were facing financial losses as they were spending huge amount but not gaining expected return due to world recession. The following deals reported: 200 bales from Rajan Pur (low quality) at Rs 5500, 400 bales from Chicha Watni at Rs 6250, 1600 bales from Khan Pur at Rs 6675, 400 bales from Rahim Yar Khan at Rs 6700 and 2600 bales of cotton from Khan Pur (Condition) at Rs 6900, dealers 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 27.05.2013
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37.324 Kgs 6,400 155 6,555 6,555 NIL
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Equivalent
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40 Kgs 6,859 155 7,014 7,014 NIL
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