The official spot rate went up despite the expectations of better crop for the 2006-07, dealers said. The official spot rate moved up by Rs 25 to Rs 2450, without upcountry expenses.
Market sources said that mills were active and making stray business to meet the forward demand. This factor is pushing the prices up, they said. Rainfall in the cotton growing area and some other part of the country may help in easing fears of water shortage, they said.
So, nearly 200 bales of cotton from Mirpur for 15 August delivery done at Rs 2500. It is expected that due to good production prices might not fluctuate sharply in the near future, they added.
Under the circumstances, it is emerging that the ginners might show some flexibility after lowering the prices, they said.
ACCORDING TO THE REUTERS: the New York Board of Trade's July cotton contract ended with 1.61 cent gains at 50.78 cents a lb, after trading between 49.60 and 50.80 cents a lb.
On Monday it had fallen to a contract low of 48.75 cents. New-crop December contract settled 1.60 cents higher at 55.51 cents, up from its 53.55 contract low hit on Monday. Longer-dated cotton contacts closed 1.10 to 1.70 firmer.
Some 1000 bales of cotton from Mirpur Mathelo finalised at Rs 2500-2510 and 2000 bales from Rahimyar Khan at Rs 2515-2525.
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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 2450.00 50 2500.00
Equivalent-------------------------------------------------
40 Kgs 2626.00 50 2676.00
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