Cotton market remains stable on continuous buying by mills

Active mills' demand was again witnessed on the cotton market on Tuesday as ginners were keen to dispose of old stock before new arrivals, dealers said. The official spot rate was unmoved at Rs 3450. The Phutti prices in Sindh and Punjab were at Rs 1700-1800. Nearly 8000 bales changed hands between Rs 3400-3500 in the ready business, they added.
Market sources said that mills were still worried about the short crop as they need more than 0.1-0.2 million bales to meet the export requirements. Another factor was sharp rise in the prices as a result of short production, this is main reason for continued buying by the mills, analysts said. The trend in the international market is bullish, which is also propelling the mills to cover forward purchasing, they added. As a matter of fact, improvement in the foreign demand for the textile items will enhance mills thrust for the cotton in the coming days, they added.
On Monday the NY cotton futures settled mixed in two-way trade and the lack of leads could keep fiber contracts pinned in see-saw action this week after a holiday break on Friday, brokers said. The key May cotton contract dropped 0.26 cent to close at 48.15 cents per lb, dealing from 46.78 to 48.91 cents. July added 0.25 cent to end at 48.98 cents. Volume traded in the May contract was at 8,813 lots at 2:53 pm EDT (1853 GMT).
THE FOLLOWING DEALS REPORTED: 400 bales of cotton from Odero Lal sold at Rs 3400, 1000 bales from Rahim Yar Khan at Rs 3500, 1700 bales from Sadiqabad at Rs 3500, 600 bales from Shujabad at Rs 3400, 400 bales from Chichawatni at Rs 3450, 600 bales from Haroonabad at Rs 3425, 2500 bales from Hasil Pur at Rs 3500, 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     3,450.00      100                   3,550.00

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Equivalent

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40 Kgs         3,697.00      100                   3,797.00

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