Rates moved up on the cotton market on Tuesday as demand was strong by the importing countries, dealers said. The official spot rate showed a rise of Rs 25 to Rs 3500 for the second day in a row. Phutti prices in Sindh also rose by Rs 25 to Rs 1675-1700 and in the Punjab, prices were unchanged at Rs 1700 and Rs 1800 mainly because of lack of quality cotton, they said.
Trading activity picked up as approximately 30,000 bales of cotton changed hands between Rs 3500-3600, they said. According to the market sources one thing is very much clear that mills and exporters both were making huge buying of cotton, the factor behind this buying rush appeared fear of short supply of quality cotton in the near future.
They also said that prices of cotton are high in the New York market, so some cotton importing countries were getting the local stuff at the cheaper rates with best quality, it is also giving an impression that the prices may go up further in days to come. On Monday the NY cotton futures vaulted to a strong close on investor buying inspired in part by stronger outside markets and a weak dollar, brokers said.
The December cotton contract increased 1.66 cents to close at 64.68 cents per lb, dealing from 63.02 to 64.84 cents. December contract volume reached 8,046 lots at 2:45 pm EDT (1845 GMT). March cotton rose 1.57 cents to settle at 67.20 cents, ranging between 65.63 and 67.30 cents.
The following deals were reported: 3000 bales of cotton from Shahdad Pur sold at Rs 3550-3600, 2600 bales from Tando Adam at Rs 3575-3600, 2000 bales from Sanghar at Rs 3550-3575, 1000 bales from Nawabshah at Rs 3550, 3000 bales from Khair Pur at Rs 3550-3600, 2000 bales from Upper Sindh at Rs 3550-3600, 2000 bales from Rajan Pur at Rs 3550-3600, 1000 bales from Fazal Pur at Rs 3550-3600, 400 bales from Rahim Yar Khan at Rs 3550, 1000 bales from Sadiqabad at Rs 3550-3575, 800 bales from Haroonabad at Rs 3525-3550, 1000 bales from Mir Pur Dewan at Rs 3550-3575, 1000 bales from Mian Channu at Rs 3550, 1400 bales from Khanewal at Rs 3525-3550, 1000 bales from Dera Ghazi Khan at Rs 3525-3550, 200 bales from Faqirwali at Rs 3525, 1000 bales from Fort Abbas at Rs 3525, 1000 bales from Burewala at Rs 3525, 2400 bales from Bahwal Pur at Rs 3500 and 200 bales from Gojra at Rs 3500.
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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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