Hectic trading seen on cotton market

Hectic trading was seen on the cotton market on Friday as mills resorted to panic buying following the anticipation that the prices may go up in the near future, dealers said. The Karachi Cotton Association (KCA) official spot was unchanged at Rs 2,575, without upcountry expenses.
According to the market sources some mills showed fresh interest in the buying as they were expecting the prices will come down, but in vain because of short crop and rising demand by the exporters. Meanwhile ginners were assuming that the prices of unsold stock will move up further and trying to increase prices, dealers said.
The Reuters reports: the New York Board of Trade's May cotton contract eased 0.06 cent to end at the session low of 53.44 cents per lb, with the day's high at 53.80 cents.
July fell 0.08 to 54.26 cents. One contract aside, the rest fell 0.05 to 0.15 cent. The Intercontinental Exchange's NYBOT electronic platform for cotton showed May contract off 0.02 cent at 53.48 cents at 2:27 pm EDT (1827 GMT), moving from 53.40 to 53.90 cents.
The following deals were reported: as 600 bales of cotton from Khanpur sold at Rs 2545, 200 bales from Tando Adam at Rs 2475, 600 bales from Gotkhi at Rs 2650, 1853 bales from Rahimyar Khan at Rs 2600-2700, 600 bales from Chani Goth at Rs 2575, 1000 bales from Sanawa at Rs 2500, 1400 bales from Bhawalpur at Rs 2470, 600 bales from Lodhran at the Rs 2550, 400 bales from Uch Sharif at Rs 2500, 300 bales from Gajjo at Rs 2400 and 200 bales from Manghi Bunglow at Rs 2550. Friday (February 09, 2006).

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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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