Firmness prevailed on the cotton market on Thursday as the mills came forward to cover the short position, dealers said. The Karachi Cotton Association (KCA) official spot rate was unchanged at Rs 5475, dealers said. In the ready business over 4000 bales of cotton from different stations changed hands between Rs 5200-5500, they said.
Market sources said that the mills were active and trying to meet their requirements within the psychological levels but the ginners were not ready to sell the unsold stock below the asking prices. The new sowing have started and the new arrival is expected in June, they said and added that the country still need two-three million bales to meet the local demand.
Besides, the new US cotton crop will most likely exceed prospective plantings reported by the US Department of Agriculture (USDA) on Wednesday, as favourable weather conditions and firm prices continued after it conducted its annual survey, analysts said this week with little doubt. On Wednesday the New York cotton futures maintained strong gains into the close, boosted by mill buying and dollar weakness, but position squaring heading into the end of the quarter made for the biggest advance, traders said.
Benchmark May cotton contract settled 1.01 cent, or 1.27 percent, stronger at 80.55 cents a lb. It widened its range to the upside, reaching a high last seen on March 25 at 81.72. The session low was 79.50 cents a lb. Volume in the May contract was healthy at 15,931 lots by 3:35 pm EDT (1935 GMT). July cotton added 1.0 cent to finish at 81.82 cents. New-crop December ended 0.44 cent higher at 75.01.
The following deals were finalised: 1053 bales of cotton from Salah Put sold at Rs 5300, 600 bales from Burewala at the same rate, 1000 bales from Mailsi at Rs 5500, 600 bales (mill to mill), at the same rate, 900 bales from (exporter to mill) at Rs 5475 and 500 bales from Sadiqabad at Rs 5200, 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 5,475.00 100 5,575.00
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Equivalent
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40 Kgs 5,868.00 100 5,968.00
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