Firmness continued in cotton market on Tuesday amid increased buying by Trading Corporation of Pakistan (TCP) and steady trend in New York cotton futures, dealers said. The official spot rate of grade 3 cotton was unchanged to Rs 1925, without upcountry expenses. In Punjab, cotton prices maintained overnight levels at Rs 1900-Rs 2000, and Sindh cotton prices were also firm at Rs 1800-1975, dealers said.
Phutti prices in Punjab were quoted at Rs 850-930 and at Rs 840-900 in Sindh.
According to market sources, mills and spinners were in the market, lifting quality cotton in a big way. Increased cotton production created confusion among leading dealers, while growers are also worried about the size of production but are not indulging in hectic selling, sources observed.
Some brokers said that exporters were in the market to lift better quality to compete in world competitions as they have enough lots to choose.
Unsold stock of cotton at ginneries might not maintain quality level and may lose attraction for the buyers, they added.
Apart from rising production reports, they said, supply side might not continue the present level as growers and farmers were cleaning fields for wheat cultivation.
Some analysts observed that news of poor quality of Indian cotton increased expectations that prices may to show firmness despite bumper production locally. They said poor quality of Indian cotton may hurt its exports.
In the meantime, they hope that if Pakistan's cotton maintains its quality it would definitely improve exports of the country.
New York cotton futures closed with small gains on speculative buying in quiet trade. The key March cotton contract climbed 0.71 cent to 43.99 cents a lb, just a hair below the session's peak of 44 cents. The low was 43.18 cents. Spot December contract rose 0.95 cent to 48.78 cents, and the rest gained 0.30 to 0.84 cent.
Following deals were reported: 1000 bales of cotton from Sanghar at Rs 1800-1825; 2000 bales from Upper Sindh at Rs 1975; 4000 bales from Bahawalpur at R 1980-2000; 2000 bales from Rahimyar Khan at Rs 1975-2000; 2000 bales from Sadiqabad at Rs 1975-2000; 1000 bales of Jalalpur at; Multan at Rs 1975-2000; 1000 bales from Alipur at Rs 1980-2000; and 1000 bales from Lodhran at Rs 1990-2000.
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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 1925.00 50 1975.00
Equivalent-------------------------------------------------
40 Kgs 2063.00 50 2113.00
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