Panic buying by exporters, mills observed on cotton market

Panic buying was witnessed in recent history of cotton business following the expectations that exports will gain momentum after textile policy, dealers said on the cotton market on Monday. The official spot rate was unchanged at Rs 3500, they said. Approximately, 45,000 bales changed hands between Rs 3500-3600, they said.
Phutti prices in Sindh were same at Rs 1700-1725 and in Punjab, the rates went up at Rs 1725-1775, they added. Several exporters indulged in cotton buying on rising expectations that the exports will improve due to incentives, promised in the textile policy, they said.
Confusion prevailing about the damage to the cotton crop in the Punjab, impelled the exporters and mills to make buying in a big way, they said. In fact quality factor is playing a vital role behind the firmness in prices, they added.
THE FOLLOWING DEALS WERE REPORTED: 9000 bales of cotton from Shahdadpur sold at Rs 3500-3525, 2000 bales from Sarhari at Rs 3500-3525, 6000 bales from Tando Adam at Rs 3500-3525, 2000 bales from Nawabshah at Rs 3500-3525, 4000 bales from Sanghar at Rs 3500-3525, 800 bales from Sakrand at Rs 3500-3525, 6000 bales from Mirpurkhas at Rs 3500-3525, 2000 bales from Mirpurkhas (exporter) at Rs 3480, (10 to 25 October delivery), 3000 bales from Jhole at Rs 3500-3525, 2000 bales from Shah Pur Chaker at Rs 3500-3525, 2000 bales from Hala at Rs 3500-3525, 1600 bales from Hyderabad at Rs 3500-3525, 600 bales from Khanewal at Rs 3575-3600, 800 from Rajanpur at Rs 3575, 400 bales from Faqirwala at Rs 3590, same figure from Fazilpur at Rs 3575, 600 bales from Sadiqabad at Rs 3585, 400 bales from Rahimyarkhan at Rs 3590, 600 bales from Chichawatni at Rs 3575, 600 bales from Mian Channu at Rs 3575 and 400 bales from Bahawalnagar at Rs 3575.

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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     3,500.00      100                   3,600.00

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Equivalent

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40 Kgs         3,751.00      100                   3,851.00

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