Cotton market stands still on final arrival report

No immediate impact was seen of lower-than-expected cotton crop in the cotton market on Friday, dealers said. The Karachi Cotton Association (KCA) official spot rate was unchanged at Rs 2700, without upcountry expenses. Not a single deal was reported after the Pakistan Cotton Ginners Association (PCGA) report about the final arrival figure, they said.
According to the market sources prompt reaction was not seen as main buyers were busy in the Friday prayers. They said that the final revised cotton crop figure for the current season was less than the projected target of 13 million bales due to the unfavourable weather conditions in Punjab and mainly in Sindh, the country achieved 12.41 million bales.
The mills need 15 million bales of cotton to meet their requirement. The mills have already imported some 50,180 bales of cotton from various sources to meet the deficit.
The spinners are still busy in importing cotton from other countries, they added. Taking advantage of the prevailing situation ginners' stance was firm and were not in mood a to lower the rate below Rs 2800, they said.
Cotton analysts were of the few that losing their hopes in the local markets for selling at the asking prices, they are exporting to the other countries and getting better return for the fine quality. The market is now totally depending on the demand and supply factor, but the prices may not fluctuate sharply, they said.
The ginners have some 0.350 million bales of unsold cotton stock, they added. Sliding trend continued in the NY cotton futures as the New York Board of Trade's open-outcry July cotton contract fell 0.22 cent to end at 48.40 cents per lb, dealing from 48.35 to 48.95 cents. The new-crop December cotton contract shed 0.15 to 53.05 cents.
The rest lost from 0.05 to 0.25 cent. Intercontinental Exchange's NYBOT electronic platform for cotton showed the July contract 0.28 cent easier at a session low of 48.34 cents at 2:26 pm, with the day's peak at 48.94 cents.

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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      2700.00        50                    2750.00

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

40 Kgs         2894.00        50                    2944.00

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