The cotton market depicted firmness on Tuesday as leading buyers extended their buying on anticipation of increase in prices, relevant sources said.
The official spot rate of grade 3 cotton was unchanged at Rs 1,975, excluding upcountry expenses. Sindh cotton changed hands at prices between Rs 1900 and Rs 2000, and from Punjab between Rs 2000 and Rs 2050.
Reports were reaching the market that pest attack and rains in the cotton growing areas might hurt cotton production, dealers said. This is one of the factors which helped the market sentiment in capturing the steadier trend, they added.
Besides, Trading Corporation of Pakistan's (TCP) presence in the market is also a boosting factor in recent firmness, leading brokers said.
Another chief factor is that the arrivals may not maintain the present trend this season, propelling the buyers for forward purchasing in anticipation of higher trend in the prices, they added.
Commercial and speculative buying helped the New York cotton futures to hold to their firmness, analysts said. December contract went up 0.87 cent to 46.54 cents a lb, dealing from 45.90 to 47.15 cents. March added 0.70 cent to 46.24 cents. One contract aside, the rest increased 0.05 to 0.30 cent.
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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 1975.00 50 2025.00
Equivalent-------------------------------------------------
40 Kgs 2117.00 50 2167.00
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