Mills and spinners made massive buying on the cotton market on Tuesday as ginners adopted flexible attitude towards prices, dealers said. The official spot rate was down by Rs 50 to Rs 6,550, they said. In the ready business, around 10,000 bales of cotton changed hands between Rs 6580-6700, dealers said. Prices of seed cotton per 40 kg in Sindh were lower by Rs 200 to Rs 2900-3000 and in Punjab rates dropped by Rs 50 to Rs 3000-3050, they said.
Some brokers said mills and spinners' rising interest in fresh buying lifted the volume of daily-intake. Monsoon rains are stopped and it looked that rains were delayed, which was not so bad for the cotton crop, they added. Cotton analyst, Naseem usman said ginners were trying to sell as much as they could, but mills were keen to bring down prices to cover the pre-Eid purchasing.
According to the market sources, the ICE cotton futures were little changed in light trading on Monday, consolidating after investor buying lifted the fibre to its largest two-day rally in more than a month, dealers said. The most-active December cotton contract on ICE Futures US edged up 0.01 cent, or 0.01 percent, to settle at 86.19 cents a lb.
Cotton was little changed throughout the day, with about 8,000 contracts traded compared with the 30-day average of about 24,000 contracts, preliminary Thomson Reuters data showed. The following deals were reported as 1600 bales of cotton from Shahdad Pur at Rs 6650-6700, 1000 bales of cotton from Tando Adam at Rs 6650-6700, 1800 bales of cotton from Sanghar at Rs 6650-6700, 1400 bales of cotton from Mir Pur Khas at Rs 6675-6700, 400 bales of cotton from Hyderabad at Rs 6675-6700, 600 bales of cotton from Kotri at Rs 6675, 200 bales of cotton from Khadro at Rs 6700, 200 bales of cotton from Bahawal Nagar at Rs 6580, 200 bales of cotton from Pir Mahal at Rs 6580, 400 bales of cotton from Samundri at Rs 6580, 1000 bales of cotton from Burewala at Rs 6585/6700, 600 bales of cotton from Khanewal at Rs 6600/6635, 200 bales of cotton from Mailsi at Rs 6600, 400 bales of cotton from Vehari at Rs 6600, 200 bales of cotton from Jahanian at Rs 6600, 200 bales of cotton from Chichawatni at Rs 6625, 200 bales of cotton from Arif Wala at Rs 6625, 400 bales of cotton from Gaggo Mandi at Rs 6625/6700, they added.
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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 22.07.2013
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37.324 Kgs 6,550 155 6,705 6,755 -50
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Equivalent
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40 Kgs 7,020 155 7,175 7,228 -53
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