Bullish sentiment on cotton market

Prices were higher in cotton market on Wednesday as exporters and mills indulged in fresh buying on news that the Trading Corporation of Pakistan (TCP) is likely to tender for export of nearly 20,000 bales cotton in the near future, dealers said.

Demand improved by leading buyers but ginners seemed not to be in a hurry to sell their stocks and were waiting for further rise in prices, dealers said.
The official spot rate of grade 3 cotton was raised by Rs 25 to Rs 2000 per maund, without upcountry expenses.
TCP along with mills and spinners has played a positive role in stabilising the market as earlier the prices were on the downside without any respite due to rising production reports, dealers observed. According to a report, the TCP has bought nearly 376,700 bales so far, they said.
Commenting on expected bumper cotton crop, they said that cotton output this season may touch 15 million bales mark, which would be an unprecedented size and higher than the so far highest 12 million bales achieved in 1991-92.
NY cotton futures were lower amid light trading in the absence of fresh leads, analysts said. December contract rose 0.08 cent to conclude at 46.62 cents a lb trapped between 46.40 and 47 cents.
March contract shed 0.36 cent to 45.88 cents. Except for one contract, the rest were flat to 0.21 cent easier.
Following deals were reported: 100 bales of Jalalpur at Rs 2075; 100 bales of Shuja Abad at Rs 2075-2100; 2000 bales from Gojra at Rs 2075; and 1000 bales from Vehari at Rs 2075.

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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      2000.00        50                    2050.00

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

40 Kgs         2143.00        50                    2193.00

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