Rising trend in prices continued on the cotton market on Tuesday amid strong demand particularly by the exporters, dealers said.
The Karachi Cotton Association (KCA) official spot rate was unchanged at Rs 5,500, they said.
No significant rise was seen in the prices of seedcotton as both low and best types in Sindh, retained last levels at Rs 2000-2600 and rates in Punjab followed the same pattern, holding the overnight levels at Rs 2400-2800, they said.
In ready dealings about 30,000 bales of cotton changed hands at Rs 4,275-6000, they added.
Buyers were looking active, including exporters, who are picking fine types at the higher rates, to meet the obligations, dealers said.
Mills and spinners were also purchasing but laying hands on the deals, which were matching with their psychological levels, analysts said.
The ginners, who have huge unsold stock, now trying to dispose of all lots before fresh arrival of phutti, it is likely that prices may not retain the present levels after the picking operation, they guessed.In the meantime, it is very much expected that the prices of fine quality may not come down due to persisting demand, they said.
On Monday the NY cotton futures settled higher on investors and option-related buying as talk circulated in the market that a top merchant is poised to take delivery of the spot contract when it goes into first notice next week, analysts said.
The spot December cotton contract on ICE Futures US increased 1.55 cents or by 1.5 percent to finish at $1.0079 per lb, moving from 97.79 to $1.009.
The now-active March cotton futures fell 1.42 cents to settle at 96.62 cents a lb.
Total volume traded on Monday hit around 31,000 lots, more than two thirds above the 30-day norm, preliminary Thomson Reuters data showed.
The following deals were reported: 800 bales of cotton from Mir Pur Khas sold at Rs 4275, 3000 bales of cotton from Khair Pur at Rs 5000/5100, 2000 bales of cotton from Upper Sindh at Rs 5500, 400 bales of cotton from Faqeer Wali at Rs 5400, 800 bales of cotton from Haroonabad at Rs 5400/5600, 400 bales of cotton from Duniya Pur at Rs 5500, 200 bales of cotton from Gojra at Rs 5500, 400 bales of cotton from Hasil Pur at Rs 5500, 600 bales of cotton from Fort Abbas at Rs 5500, 800 bales of cotton from Lodhran at Rs 5500/5600, 400 bales of cotton from Abdul Hakeem at Rs 5500, 200 bales of cotton from Multan at Rs 5500, 400 bales of cotton from Yazman at Rs 5500/5600, 3000 bales of cotton from Bahawal Pur at Rs 5500/5600, 1600 bales of cotton from Ahmed Pur at Rs 5500/5700, 200 bales of cotton from Pak Pattan at Rs 5550, 200 bales of cotton from Vehari at Rs 5575, 400 bales of cotton from Adda Floor at Rs 5600, 200 bales of cotton from Mongi Bangla at Rs 5600, 600 bales of cotton from Liaquat Pur at Rs 5600, 400 bales of cotton from Ali Pur at Rs 5600, 1400 bales of cotton from Burewala at Rs 5600/5700, 200 bales of cotton from an Channo at Rs 5650, 400 bales of cotton from Fazil Pur at Rs 5700, 600 bales of cotton from Shadan Lund at Rs 5700, 200 bales of cotton from Arif Wala at Rs 5700, 1000 bales of cotton from Chichawatni at Rs 5550-5700, 1400 bales of cotton from Rahim Yar Khan at Rs 5600-5700, 600 bales of cotton from Kassowal at Rs 5700, 600 bales of cotton from Layyah at Rs 5700, 1000 bales of cotton from Khanewal at Rs 5650-5750, 1000 bales of cotton from Muhammad Pur at Rs 5800, 2400 bales of cotton from Rajan Pur at Rs 5800-5900 and 1400 bales of cotton from Mian wali at Rs 5800/6000.
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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.<br/><br/>KHI.<br/><br/>As Ex-Karachi
on 11.11.2011
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37.324 Kgs 5,500 130 5,630 5,630 NIL
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Equivalent
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40 Kgs 5,894 130 6,024 6,024 NIL
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Source: http://www.brecorder.com/cotton-a-textiles/single/625/185/1251693/
