Spot rate raised by Rs 25 on cotton market

Firmer trend was again witnessed on the cotton market on Thursday as the official spot rate was up modestly amid thin activity, brokers said. The Karachi Cotton Association (KCA) official spot rate was higher by Rs 25 to at Rs 3375. A deal of 200 bales of new crop from Mirpurkhas done at the high rate of Rs 3700 for August delivery, they added.
Commenting on the upward trend on the cotton market, they said that dollars' appreciation versus the rupee is pushing up the prices of cotton and if the local currency continues its slide in days to come, the rates of cotton will go up, how much?, it will depend on the fluctuation of the official rupee-dollar parity rates, they said.
Market sources said that many spinners, despite the fact that they have enough stock but under the circumstances, they are worried over the fluctuations in the local rates, which mostly tracked the NY cotton futures.
The trend in the NY cotton market is on the upward for the last many sessions, which is making the mills not able to come at the bargaining position. But on the other hand, the ginners, who have now approximately four lakh unsold stock are in very strong position because this figure is too little dispose of, they observed.
On Wednesday, the cotton futures closed mixed as the market dawdled in a band, brokers said. ICE Futures' July cotton contract rose 0.01 cent to finish at 70.37 cents per lb, trading from 69.37 to 70.61 cents. The new-crop December contract eased 0.02 cent to 78.87 cents, dealing from 77.90 to 79.40 cents.
Volume traded in the July contract at 3:33 pm (1933 GMT) was 5,117 lots, while December's tally was 1,155 lots. The following deals were reported as some 3500 bales of cotton from upper Sindh sold at Rs 3500-3550, 600 bales from Sadiqabad at Rs 3400 and 1000 bales from Rahim Yar Khan finished at Rs 3500, they added.

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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      3375.00        50                    3425.00

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

40 Kgs         3617.00        50                    3667.00

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