Spot rate continued declining trend for the second day in a row in the cotton market on Saturday in the absence of proper demand by the mills and spinners, dealers said. The official spot rate, which was down by Rs 35 on Friday shed another Rs 15 to Rs 2300, without upcountry expenses.

In the ready business, prices of cotton were soft at Rs 2200-2300 in Sindh and in Punjab unchanged at Rs 2350. Phutti prices in Sindh stayed put at Rs 1025-1075,and Punjab variety prices retained the overnight level at Rs 1050-1100, dealers said.

Market sources said that trading activity was comparatively low due to transportation problems ahead of the Eid holidays. Genuine buyers were in the market to meet the near terms demand.

Commenting on the slackening demand in the cotton purchasing, analysts said that there were speculations in the market that Chinese demand fell for the near-term buying, this report was also a leading factor behind the falling trend in the prices and buying as well.

They said that cotton market may observe dullness during the pre-holiday sessions in the absence of demand. The New York Board of Trade's key December cotton contract dove 2.63 cents or 4.8 percent to finish at 52.13 cents a lb., trading between 52.10 and 54.10 cents.

It was the lowest close for the contract since late last month when it traded just under 52 cents. March slumped 2.54 cents to 54.36 cents. Back months declined from 0.75 cent to 2.80 cents.

FOLLOWING DEALS WERE REPORTED: 200 bales of cotton from Daur at Rs 2290, 400 bales from Shahdadpur at Rs 2300, 400 bales from Muridwala at Rs 2350, 200 bales from Lodhran at the same rate, 400 bales from Janpur at Rs 2365, 1000 bales from Bahawalpur at Rs 2350-2365, 1000 from Rahimyar Khan at Rs 2350, and 200 bales from Dera Gazi Khan at Rs 2350.

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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      2300.00        50                    2350.00

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

40 Kgs         2465.00        50                    2515.00

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Copyright Business Recorder, 2005