Phutti prices up on cotton market

Prices extended overnight gains on the cotton market on Thursday following the rising demand by the mills and exporters, dealers said.
Market sources attributed the rise in prices to improved demand by the buyers on news that China was interested in cotton buying. This factor propelled the Trading Corporation of Pakistan (TCP), mills exporters and spinners to cover their forward purchases.
All were trying to buy cotton on the prevailing prices on anticipation of further increase in the near future, they added. The phutti (seed cotton) prices also improved further, dealers said.
According to the market sources, during the month the cotton prices stabilised due to continue buying by the leading buyers, they said.
The seed cotton maintained upward trend despite five million bales of phutti arrivals news till the end of month, brokers said and adding that the prices might show slight weakness but not in the near future.
Seed cotton (phutti) from Sindh is ranging between Rs 825-Rs 900 and from Punjab stations were available at Rs 875 and Rs 935.
The official spot rates, after maintaining firm posture during the week, posted further gain of Rs 40 at Rs 2,040.
Thus, cotton prices gained Rs 65 within two days, dealers said.
New York cotton futures moved both ways in thin activity, analysts said. They said that December contract rose 0.21 cent to finish at 46.83 cents a lb, ranging between 46.50 and 47.20 cents. March contract lost 0.21 cent to 45.67 cents. The rest ranged from 0.37 cent easier to 0.05 cent firmer.
Following deals reported: 2,000 from Bhawalpur at Rs 2,100, same number of cotton bales from Rahimyarkhan sold at the same rate, 1,000 from Jalalpur at same rate, 200 from Jhole at Rs 1,940, 400 from Mailsi at Rs 2,100.

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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      2040.00        50                    2090.00

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

40 Kgs         2186.00        50                    2236.00

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