Business activity increases on cotton market

Mills and spinners' demand improved on cotton market on Tuesday as prices showed easier trend due to expectations of good crop for the new season, dealers said. The Karachi Cotton Association (KCA) official spot rate was unchanged at Rs 3650, they said.
Phutti prices in Punjab were at Rs 1700-1750 while Sindh unchanged at Rs 1850-1900 for the second day due to quality factor, they added. Market sources said that despite the not very positive developments on the textile front, the spinners and mills indulged in hectic cotton buying, but exporters were on the sidelines due to falling trend in the dollar's value.
Furthermore, some dealers said that the activity may come down as mills and spinners may prefer to be on the sidelines in anticipation of lower trend in the prices. On Monday, the NY cotton futures were hit by a fusillade of investment fund sales to finish lower and brokers said the weak tone may lead to further losses in the days ahead.
The key December cotton contract slid 1.56 cents to finish at 72.03 cents per lb, dealing from 71.89 and 73.39 cents. Volume traded in the December contract stood at 6,597 lots at 2:41 pm EDT (1841 GMT).
The following deals were reported : some 200 bales of cotton from Shahdadpur sold at Rs 3975, same figure from Sanghar at the same rate, same figure from Tandoadam at the same rate, same figure from Pakpattan at the same rate, 400 bales from Haroonabad at Rs 3850-3900, 1000 bales from Arifwala at Rs 3900,same figure from Burewala at Rs 3850-3950, 400 bales from Gajjo at Rs 3875, 900 bales from Chichawatni at Rs 3850-3900, 200 bales from Muridwala at Rs 3900, 200 bales from Gojra at Rs 3900, same figure from Pir Mahal at the same rate, 600 bales from Sahiwal at Rs 3825-3850, 200 bales from Bahawalpur at Rs 3850, same figure from Depalpur at the same rate, 400 bales from Haroonabad at Rs 3850-3900, 200 bales from Chistian at Rs 3850, same figure from Mian Chunnu at Rs 3850, same number from Khanewal at Rs 3900 and same figure from Qaboola at the same amount, 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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