Prices of cottonseed (phutti) low type was down by Rs 100 in Sindh at Rs 2300 while the fine variety was unchanged at Rs 2700 and in Punjab rate of low quality was up by Rs 100 to Rs 2400 while the best type was inert at 2800, they said. Business activity was slow as mills and spinners looking in lethargic mood as they Fed up with the less supply of power and gas in the country, which is causing shut down of mills, cotton analyst Naseem Usman said. Under the circumstances, it appeared that the prices may depict slight weakness in the coming days, other brokers said.
According to the Reuters, the US cotton's three-day rally came to an abrupt end on Thursday as recent speculative and trade buying dried up and some investors locked in profits after prices touched fresh multi month highs. After initially extending the previous three sessions' gains, cotton dropped over 2 percent in late morning trade as buying evaporated when prices touched 77.1 cents per lb, its loftiest level since September 19.
"This is no more than an exhaustion. You have the exhaustion when the buyers get exhausted in the same spot, but it has held technical levels," said Lou Barbera, cotton dealer at ICAP Cotton in New York. Even after Thursday's aggressive pullback, the market's upward trend is still in tact after holding above the 14-day moving average at 75.43 cents, which also marked a 38-percent retracement from the December 5 low, traders said.
"We do have room to go down to 74.4 cents, but even then, the market still looks very good. We're still seeing the right technical buying down there," said Barbera. Trading in a 1.68-cent range - its widest in five weeks - the most-active March cotton contract on ICE Futures US settled down 1.05 cents, or 1.4 percent, at 76.01 cents per lb. Volume picked up as investors eased back into routine after the Christmas holiday break, with over 11,500 lots of March changing hands on the day.
The following deals were reported: 200 bales of cotton from Shahdadpur at Rs 5400, 200 bales from Sanghar at Rs 5400, 400 bales from Mirpurkhas at Rs 5400, 200 bales from Sakrand at Rs 5900, 400 bales from Upper Sindh (BC) at Rs 6100, 200 bales from Mian Chano at Rs 5300, 200 bales from Chichawatni at Rs 5550, 400 bales from Sahiwal at Rs 5550-5850, 1000 bales from Burewala at Rs 5850, 600 bales from Arif Wala at 5850, 400 bales from Jalalpur at Rs 5900, 200 bales from Bahawalpur at Rs 5900, 200 bales from Bahawalpur (BC) at Rs 6000, 400 bales from Rahimyar Khan at Rs 6050 and 600 bales from Rajanpur at Rs 6100, 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 Difference
For Price Ex-Karachi Ex. KHI. As Ex-Karachi
on 27.12.2012
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37.324 Kgs 6,000 155 6,155 6,155 NIL
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Equivalent
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40 Kgs 6,430 155 6,585 6,585 NIL
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