Some fluctuations were seen on the cotton market on Saturday following the prospects of more rains. So mills continued buying on anticipations of slow arrival in the near-future, dealers said. The Karachi Cotton Association (KCA) official spot rate was unchanged at Rs 6200, they said.
In the ready business nearly 5,600 bales of cotton changed hands between Rs 6000-6350, they said. Hopes of rise in phuitti arrivals pushed the prices lower as rates in Sindh were at Rs 2500-2550 and in Punjab at Rs 2700-2800, they said. Commenting on the latest development on the cotton market, Naseem Usman said that crop condition is good and now phutti arrivals are picking pace, which caused slight fall in the prices.
The mills were cautious on expectations of further decline in the prices. It is feared that fresh rains and expected floods in Sindh may hit the cotton crop, some brokers said. In the meantime, the mills are buying cotton on quality factor, on the other hand they were hoping that prices may come down in the coming days, they said.
On Friday the NY cotton futures finished at a month high on technically inspired buying and the momentum from the advance may spill over into trading next week, brokers said. The December cotton contract climbed 1.85 cents, or by 2.40 percent, to close at 78.76 cents per lb, dealing from 76.68 to 78.94 cents.
It was the highest close for the second position contract since July 1, according to Thomson Reuters data. On the week, the contract was up 4.54 percent and gained 3.11 percent on the month. The spot October cotton contract added 1.68 cents or by 2.08 percent to finish at 82.36 cents. October has a 3.60 cents premium over key December, down from the previous session's premium of 3.77 cents. Volume traded in the December contract stood at 15,402 lots at 2:51 pm EDT (1851 GMT).
The following deals were reported: 600 bales of cotton from Shahdad Pur sold at Rs 6000, 200 bales from Sakrand at Rs 6000, 600 bales from Mir Pur Khas at Rs 6000, 600 bales from Tando Adam at Rs 6000, 400 bales from Shahdad Pur at Rs 5800 (for 18 August delivery), 200 bales from Kabirwala 6350, 400 bales from Khanewal at Rs 6300, 2000 bales from Burewala at Rs 6250-6300, 200 bales from Mian Channu at Rs 6300, 200 bales from Vehari at Rs 6250, 200 bales from Mongi Bangla at Rs 6250, 200 bales from Arifwala at Rs 6200 and 200 bales from Chichawatni at Rs 6200.
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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 6,200.00 100 6,300.00
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Equivalent
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40 Kgs 6,645.00 100 6,745.00
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