Firmness prevails on cotton market

Firmness prevailed on the cotton market on Wednesday as in most parts of Punjab rains started again and may help to stabilise rates in the coming days, dealers said. The Karachi Cotton Association (KCA) official spot rate was unchanged at Rs 3650, dealers said.
Phutti prices in Punjab were Rs 1700-1750 and in Sindh was at Rs 1800-1850, they said. Meanwhile, cottonseed prices came down by Rs 100 to Rs 650 per maund, they said. According to the market sources the rates were firm due to strong demand by the exporters. Other leading factor was the news that India has scrapped import duty on raw cotton and withdrawn export incentives to boost domestic stocks, the government said on Wednesday, raising the prospect of higher imports and lower prices.
Trade officials said local prices, which have surged more than 35 percent in the past year, would soften while imports by traders and textiles mills could rise to one million bales (170 kg).
On Tuesday, Cotton futures finished lower on late investor sales and analysts feel the market may be able to stabilise in front of a pair of government reports due out at the end of the week, brokers said. The key December cotton contract shed 1.02 cents to finish at 71.74 cents per lb, dealing from 70.86 to 75.33 cents. Volume traded in the December contract stood at 22,775 lots at 2:41 pm EDT (1841 GMT).
The following deals were reported: some 200 bales of cotton from Shahdadpur at Rs 3850, 800 bales from Arifwala, 600 bales from Chichawatni, 800 bales from Bureawala, 600 bales from Pakpattan, 400 bales from Depalpur and 600 from Mian Channu at the same rate finished at Rs 3800-3850, 200 bales from Gojra at Rs 3800, same figure from Hyderabad at Rs 3825, dealers said.

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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     3,650.00        50                   3,700.00

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

40 Kgs        3,912.00        50                   3,962.00

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