Prices, volume fall as cotton market tracks New York trend

KARACHI: Prices fell modestly on the local cotton market on Saturday as mills kept on the sidelines in expectations of further decline in the rates, dealers said. The Karachi Cotton Association (KCA) left the spot rate unchanged at Rs 8,500, as a result, seeds cotton prices in Sindh and Punjab slid with modest fall by Rs 200-100 to Rs 3,500-3,900, they said.In ready business activity was down as about 11,000 bales changed hands at Rs 8,100-9000, they added. The mills, who were busy in forward buying during the last sessions, now kept on the sidelines on expectations of more decline in the rates, analysts said.They said that during the last several sessions, the mills continued forward buying of cotton to build-up long position despite the higher rates, even some of them were ready to pay higher rates for the fine types. But, falling trend in the NY cotton market, propelled them (mills) to wait for new development in the next week, they said.

In the meantime the ginners, however were looking a little bit confused under the circumstances, may they also get some leads in the coming week, they observed. On Friday the US cotton futures finished down four percent, falling by their daily limit intraday and bouncing like a yo-yo in sideways dealings after dropping more than 25 percent from a record high hit two weeks ago.The benchmark contract closed the week down 9.2 percent, the biggest weekly loss for the second-position contract since February 2009. March cotton futures made the biggest losses for the day on the 19-commodity Reuters-Jefferies CRB index, just one session after being the biggest gainers. They were the biggest losers on the index the day before that.Volume was thin, however, in a slightly abbreviated session following the US Thanksgiving holiday on Thursday. The benchmark March cotton contract on ICE Futures US closed down 4.83 cents, or 4.1 percent, at $1.1176 per lb, slightly paring losses after falling by the daily limit of five cents to a session low at $1.1159.

The following deals were reported: 600 bales of cotton from Sanghar sold at Rs 8300-8400, 200 bales from Hyderabad at Rs 8400, 1000 bales from Mir Pur Khas at Rs 8500,.600 bales from Tando Adam at Rs 8500-8600,.1000 bales from Shahdad Pur at Rs 8500-8600, 1200 bales from Khair Pur at Rs 8600-8700, 2000 bales from Upper Sindh at Rs 9000,.200 bales from Arifwala at Rs 8100, 400 bales from Mian Channu at Rs 8300, 200 bales from Haroonabad at Rs 8400, 200 bales from Dera Ghazi Khan at Rs 8500,.800 bales from Rahim Yar Khan at Rs 8500-8600,.400 bales from Sadiqabad at Rs 8600,.400 bales from Layyah at Rs 8600, 200 bales from Khanewal at Rs 8700 and 400 bales from Fazil Pur at Rs 8700 – Brecorder
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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 26.11.2010
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37.324 Kgs       8,500       120       8,620        8,620               NIL
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Equivalent
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40 Kgs           9,109       120       9,229        9,229               NIL
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