Rates were firmer on the cotton market on Saturday following the active mills demand, dealers said. The official spot rate was intact at Rs 3225, they said. The phutti prices in both the Punjab and Sindh were at Rs 1500-1600. In the ready business, rates moved between Rs 3125 and Rs 3300, they added.
Market sources said that activity showed slight improvement this week as mills, hesitantly, due to financial problem, were trying to cover their forward buying. But the fact is that the ginners were keen to hold the unsold stock of fine quality in anticipation of increase in the prices, they said.
They were of the view that scenario is the prices of fine cotton will go up due to falling unsold stock position. So, it seems that the mills are bound to cover the immediate needs, they added. At the weekend, the NY cotton futures finished higher on follow-through investment fund buying, and the momentum from its advance should spill over into next week, brokers said.
The key May cotton contract rose 1.21 cents to end at 44.08 cents per lb, trading from 42.95 to 44.34 cents. July added 1.18 cents to conclude at 44.93 cents. Volume traded in the May contract was at 8,327 lots at 2:43 pm EDT (1843 GMT).
The following deals were reported: 200 bales of cotton from Sadiqabad sold at Rs 3150, 400 bales from Daur at Rs 3125, 600 bales from Rahim Yar Khan at Rs 3300 and 1000 bales from same station at Rs 3350 (deferred payment), they 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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37.324 Kgs 3,225.00 100 3,325.00
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Equivalent
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40 Kgs 3,456.00 100 3,556.00
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