Prices showed no big change on the cotton market on Wednesday as mills were active to cover the near term needs ahead of the PCGA report, brokers said. The official spot rate remained unchanged at Rs 2150, without upcountry expenses. Dealers said that the cotton prices maintained Teuseday's levels in both the Punjab and Sindh around Rs 2250-2275. The phutti prices also maintained last levels at Rs 900-1050 in Sindh and Punjab.
They observed that modest business was seen as higher trend persisted in the market as ginners remained insisting for Rs 2300 for fine lots amid short supply position.
According to the unconfirmed reports, some 4000 bales of cotton from Yazman Mandi were sold at Rs 2300. In fact, mills were looking for fine quality to meet their future demand, they added.
The Pakistan Cotton Ginners Association (PCGA) data, might not show significant change in present outlook for cotton crop figure and this factor may push the prices up in the near futures, they said.
Brokers said that the New York cotton futures settled at a three-week high on speculative buying and switch trade, but fibber contracts appear to be getting a bit top heavy and the surge could slow down this week.
The New York Board of Trade's key March cotton contract surged 0.72 cent to finish at 46.28 cents a lb, trading from 45.85 to 46.90 cents.
It was the highest finish for cotton on spot basis since ending at 46.78 cents on January 26. May contract gained 0.44 to 46.91 cents. Back months added from 0.37 cent to 1.40 cents.
Only one deal of 2300 bales finalised from Rahim yar Khan at Rs 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 2150.00 50 2200.00
Equivalent-------------------------------------------------
40 Kgs 2304.00 50 2354.00
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