A few deals struck on the cotton market on Tuesday at the seasonal peak level due to short supply position, dealers said. The Karachi Cotton Association (KCA) official spot rate was unchanged at Rs 2725, without upcountry expenses. In the ready business deals finalised between Rs 2735 and 2800, they said.
There was shortage of cotton, is a fact, it is to be considered weather buyers should pay higher cost for local or buy imported cotton, which is cheaper and also better quality wise, dealers said.
The New York cotton market reopened on Monday after observing long week-end due to the Good Friday and Easter holidays. The New York Board of Trade's May cotton contracts tumbled 1.10 cents to finish at 51.81 cents per lb, trading from 51.80 to 53.10 cents.
Based on the spot daily charts it was the lowest close for cotton since ending at 51.76 cents on February 14. July fell 1.00 to 53.55 cents. The rest lost from 0.65 to 0.83 cent.
The Intercontinental Exchange's NYBOT electronic market for cotton showed the May contract down 1.07 cents to 51.84 cents at 2:57 pm EDT (1857 GMT), moving from 53.18 to a new lifetime low of 51.80 cents. The following deals were reported: 800 bales of cotton from upper Sindh sold at Rs 2735, 1000 bales from Rahimyar Khan, 1000 bales from Khanpur and 500 bales from Karachi sold at Rs 2800.
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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 2725.00 50 2775.00
Equivalent-------------------------------------------------
40 Kgs 2920.00 50 2970.00
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