Continued fall in rates, propelled mills to make more deals ahead of Eid-ul-Fitr holidays, dealers said on the cotton market on Wednesday. The official spot rate was down by Rs 100 to Rs 5800, they added. The prices of seed cotton in Sindh and Punjab dropped by Rs 200 to Rs 2900-3000, they said. In the ready session, over 9000 bales of cotton changed hands between Rs 5875-5950, they said.
According to the market sources, despite not very good quality of cotton, mills indulge in fresh buying to cover their needs. Cotton analyst, Naseem Usman said that quality may improve after rains in the cotton belt. Rains will be beneficial for the stranding crop and will help in increasing prices, he added.
Reuters adds: Cotton futures rose slightly on Tuesday as mills continued to buy small parcels of fiber, even as technical selling pushed prices off their intraday highs after the market pierced a key short-term resistance earlier in the day. Holding in recent ranges, the benchmark December cotton contract on ICE Futures US closed up 0.22 cent, or 0.33 percent, at 67.91 cents a lb on just under 11,000 lots traded on the day.
The following deals reported: 800 bales of cotton from Kotri at Rs 5850, 200 bales from Hyderabad at Rs 5850, 2000 bales from Mir Pur Khas at Rs 5850, 600 bales from Tando Adam at Rs 5850, 1000 bales from Sanghar at Rs 5850, 800 bales from Shahdad Pur at Rs 5850-5900, 200 bales from Multan at Rs 5850, 200 bales from Mongi Bangla at Rs 5875, 400 bales from Vehari at Rs 5900, 200 bales from Bakkhar at Rs 5900, 400 bales from Samandri at Rs 5900, 800 bales from Arif Wala at Rs 5900, 600 bales from Burewala at Rs 5900, 400 bales from Sahiwal at Rs 5850-5950, 400 bales from Chichawatni at Rs 5900-5950 and 200 bales from Pak Pattan at Rs 5950, 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 22.07.2014
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37.324 Kgs         5,800      155        5,955         6,055           -100
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Equivalent
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40 Kgs             6,216      155        6,371         6,478           -107
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