Trading activity slows down due to rains

September 07, 2012:  Business activity slowed down on the cotton market on Thursday due to sporadic rainfall in both Sindh and Punjab, dealers said. Official spot rate was unchanged at Rs 5650, they said. In the ready business, nearly 4000 bales of cotton changed hands between Rs 5600-5700, they said. Prices of seed cotton in Sindh and Punjab were at Rs 2200-2500, they added.

Market sources said that mills were on the sidelines in anticipation of further slide in the rates. Naseem Usman said that falling trend may attract exporters, which most probably can help prices to resist sharp erosion in the coming days. Rains are beneficial for the cotton crop but if rains lasted for a long time, this may hurt the quality of cotton days to come, other brokers said. According to the Reuters, the NY cotton futures fell for a second-straight day on Wednesday, pressured by poor fundamental demand prospects and a weaker technical picture that may work to values down toward the 70-cent level.

Limited damage from Hurricane Isaac to crops in Mississippi and The benchmark December cotton contract shed 0.33 cent to settle at 75.35 cents per lb, after moving between 74.80 and 76.00 cents. Our expectation is for the market to stay above 71.00 on this next dip,” Knight Futures analysts said in a research note on Tuesday.

ICE cotton futures volumes stood above 15,000 lots in late New York business, nearly 40 percent below the 30-day norm, according to preliminary Thomson Reuters data. The following deals reported: 400 bales of cotton from Mir Pur Khas at Rs 5650/5675, 200 bales of cotton from Sanghar at Rs 5650, 200 bales of cotton from Lodhran at Rs 5700, 300 bales of cotton from Bahawal Pur at Rs 5700, 700 bales of cotton from Arif Wala 5700, 200 bales of cotton from Kabir Wala at Rs 5700, 100 bales of cotton from Gojra at Rs 5700, 400 bales of cotton from Burewala at Rs 5675, 800 bales of cotton from Vehari at Rs 5600/5700, 200 bales of cotton from Ali Pur at Rs 5650, 200 bales of cotton from Bahawal Nagar at Rs 5650, 200 bales of cotton from Hasil Pur at Rs 5650, 200 bales of cotton from Dharan Wala at Rs 5650, they 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    DifferenceFor      
Price             Ex-Karachi  Ex. KHI. As   Ex-Karachion 05.09.2012
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37.324 Kgs       5,650      130       5,805       5,805                 NIL
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Equivalent
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40 Kgs           6,055      130       6,210       6,210                 NIL
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Courtesy: BR

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