Activity improves on cotton market

Firmness prevailed on the cotton market on Tuesday as supply of fine quality was tight but demand is rising gradually by the mills, dealers said. The official spot rate remained at its overnight level at Rs 3375. Phutti prices in both the Punjab and Sindh fell slightly to Rs 1800. About 4000 bales of cotton changed hands between Rs 3350-3400, they added.
According to the market sources, mills were busy in purchasing of good type mainly because of quality factor. In the meantime it is expected that the rates may come down due to good production and presence of the Trading Corporation of Pakistan (TCP), they said. Besides, it is most likely, the ginners may not bring down the prices of best quality of cotton, they added.
On Monday the NY cotton futures closed easier on investor sales in thin business out of a holiday break, brokers said. The cotton market was shut on Friday for a holiday. The new-crop December cotton contract slipped 0.68 cent to close at 60.24 cents per lb, dealing from 59.07 to 60.65 cents. Volume traded in the December contract was at 4,728 lots at 2:40 pm EDT (1840 GMT). The March cotton contract shed 0.56 cent to end at 62.63 cents.
THE FOLLOWING DEALS WERE REPORTED: 700 bales of cotton from Sanghar sold at Rs 3350-3400, 800 bales from Tando Adam at Rs 3350-3390, 600 bales from Hyderabad sold at Rs 3350-3375, 600 bales from Shahdad Pur 3350-3390, 200 bales from Sahiwal at Rs 3400 100 bales from Pak Pattan at Rs 3400, 200 bales from Haroonabad at Rs 3390, 400 bales from Burewala at Rs 3400, 100 bales from Burewala at Rs 3375 and 100 bales from Chichawatni at Rs 3375, 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     3,375.00      100                   3,475.00

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Equivalent

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40 Kgs         3,617.00      100                   3,717.00

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