Prices were moderately up on the cotton market on Saturday as monsoon rains started in the country, dealers said. The official spot rate rose by Rs 50 to Rs 6,550, they said. In the ready business, around 5,000 bales of cotton changed hands between Rs 6650-6800, dealers said. Prices of seed cotton per 40 kg in Sindh were unchanged at Rs 2950-3950 and in Punjab rates held the overnight level at Rs 2875-3000, they said.
Cotton analyst, Naseem Usman said that after fresh rains in the country, it looked that Phutti arrivals might curtail during the pre-Eid holiday sessions. Dealers said that ginners were looking satisfied after rains as ginners were anticipating that prices would go up due to short supply
Report showing that India has allowed the Cotton Corporation of India (CCI) to export the fibre in the 2012/13 season with certain conditions relaxed, a government statement on Friday said. The state-run company has already exported 3,000 bales in 2012/13 cotton year. According to the Reuters: NY cotton futures slipped on Friday in rangebound trade on light volume as fears about greater supply from India, the world's No 2 producer, and tepid US job data offset shrinking exchange stocks. News that India has eased restrictions on exports knocked prices lower. Heavy rains bolstered farmers' crop expectations.
The strong potential for a much larger record crop will keep a lid on prices, said Sharon Johnson, cotton specialist with KCG Futures in Atlanta. The benchmark December cotton contract on ICE Futures US closed down 0.45 cent, or 0.5 percent, to settle at 84.98 cents per lb. Just 7,300 lots of December contract traded on the day. Prices ended the week down slightly.
The following deals were reported as 1,000 bales from Sanghar sold at Rs 6650, 800 bales from Tando Adam at Rs 6650, 1000 bales from Mir Pur Khas at Rs 6650, 1000 bales from Shahdad Pur at Rs 6650, 200 bales from Lodhran at Rs 6600, 600 bales from Burewala at Rs 6600, 200 bales from Chichawatni at Rs 6700 (After Eid payment) and 200 bales from Haroonabad at Rs 6800 (After Eid payment), 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 02.08.2013
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37.324 Kgs        6,550       155        6,705        6,655             +50
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Equivalent
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40 Kgs            7,020       155        7,175        7,121             +54
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