Upward trend on cotton market

After maintaining a stable trend for several days, prices went up on the cotton market on Thursday on continued demand by the leading buyers, sources said.
The official spot rates rose by Rs 25 to Rs 1,950. Several bales of cotton from Sindh changed hands between Rs 1,900 and Rs 2,000. Thousand of bales of cotton were available, ranging between Rs 2,000 and Rs 2,025.
Thanks to the government's recent measures to bring stability in the prices, market pundits said, adding the corrective moves also helped the growers, who were under pressure due to continued fall in the prices and reluctantly selling their stocks below the produce level.
Sources said the cotton market managed to present a firm outlook for the several days on the back of directive given by the prime minister in which he urged the Trading Corporation of Pakistan (TCP) to increase buying from the ginners to maintain stability in the prices.
This factor, in fact, helped the ginners in shedding their worries over the prices and rising stock in the ginneries, dealers said.
In anticipation of further increase in the prices, spinners were in the market for their routine buying and tried to buy more for the said reason, they added.
The improved demand by the quarters concerned and positive signals from the New York cotton market changed the total scenario in the local market, they said.
Speculative buying pushed the cotton futures up on Wednesday, but a steady fusillade of trade sales trimmed the gains, analysts said.
December cotton ended up 0.45 cent at 47.99 cents a pound after trading 47.10 to 48.90 cents. March gained 0.05 to 47.05 cents and, aside from two contracts, the rest finished unchanged.

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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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37.32 Kgs          1950.00         50               2000.00

Equivalent-------------------------------------------------

40 Kgs             2090.00         50               2140.00

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