Prices, business volume rise on cotton market

Prices moved up sharply on the cotton market on Saturday as mills accelerated buying in anticipation of further rise in the rates, dealers said. The Karachi Cotton Association (KCA) official spot rate was higher by Rs 50 at Rs 2,575, without upcountry expenses.
The sharp rise was the result of higher demand in ready business. Dealers said. Nearly 6000 bales of cotton from Khanpur were sold at Rs 2700, they said. Hovering fears of rising trend in the prices as a result of short crop during the current season propelled the spinners to cover their forward buying, they said.
Higher trend in the New York cotton market along with the increase in cotton prices in India and shortage of production helped the ginners to keep their firm stance over the prices, they said.
The Reuters reports: the New York Board of Trade's May cotton contract rose 0.01 cent to close at 54.50 cents per lb, trading from 53.95 to 54.60 cents. One contract aside, the rest were flat to up 0.15 cent.
The Intercontinental Exchange's NYBOT electronic market for cotton showed the May contract unchanged at 54.49 cents at 2:30 pm EST (1930 GMT), in a band from 54 to 54.58 cents.
The following deals were finalised: 800 bales of cotton from Rohri sold at Rs 2600, 6000 bales from Sadiqabad at Rs 2526-2640, 2500 bales from Mian Chunnu at Rs 2600-2640, 2000 bales from Khanpur at Rs 2650, 6000 bales from the same station at Rs 2700 and 600 bales from Shujabad at Rs 2640.

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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      2575.00        50                    2625.00

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

40 Kgs         2760.00        50                    2810.00

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