Prices sharply lower on cotton market

In line with New York cotton futures, prices in cotton market here tended sharply lower on Saturday, dealers said. The official spot rate remained unchanged at Rs 2,350, without upcountry expenses. Lint prices came down to Rs 2350.
Market players were expecting that prices might drop in the coming days.
According to market sources, NY cotton futures fell 5.5 percent on Friday amid profit taking ahead of long weekend. The overseas markets were relieved after the news that Hurricane Frances was downgraded before reaching the cotton growing areas in Florida.
Key December cottons fell 3 cents, settling at 51.58 cents a lb. It traded from 53.70 cents to 51.58 cents. March went down 2.98 cents to 52.78 cents a pound.
Local ginners were not inclined to sell at lower prices, market men said. On the other hand, some mills and spinners took part, but not fully, on anticipation that prices might come down further, they added.

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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      2375.00        50                    2425.00

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

40 Kgs         2545.00        50                    2595.00

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