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  • News Desk
  • Feb 1st, 2005
  • Comments Off on Cotton trade subdued on price fall expectation
Subdued business was seen on the cotton market on Monday as many buyers kept on the sidelines on anticipation of further decline in the prices, brokers said. The official spot rate was unchanged at Rs 25 at Rs 2050, without upcountry expenses. Phutti prices picked up 25-50 in Sindh at Rs 900-1050 and the same trend was seen in Punjab at Rs 900-1100. Cotton was available at Rs 1900-2200 in Sindh and in Punjab it was at Rs 1950-2200, dealers said.

Activity was low as needy mills entered the market to cover their immediate requirements but on quality basis, dealers said.

According to the market sources, better inventory position was also an aiding factor, which encouraged spinners to wait for the time being.

In the meantime the perception of slide in the prices as a result of rising world cotton production might not come true due to asking demand from India and China and growing consumption in the country as well, brokers said.

They also said under the circumstances, the prices might show firmness in the local cotton market and expectedly may not be influenced by the NY cotton futures.

Ginners are in a relaxed mood and were showing no hurry in selling their stock on falling prices.

Following deals were reported: some 400 bales of cotton transacted from Sanghar at above Rs 2000 and 4000 bales of Rahimyar Khan at Rs 2100-2200.





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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"

MICRONAIRE VALUE BETWEEN 3.8 TO 4.9 NCL

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Rate Ex-Gin Upcountry Spot Rate Ex-Karachi

for Price Sales Tax @ 15%

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37.32 Kgs 2050.00 50 2100.00

Equivalent-------------------------------------------------

40 Kgs 2197.00 50 2247.00

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Copyright Business Recorder, 2005


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