Firm trend witnessed on cotton market

The wait-and-see mood prevailed on the cotton market on Thursday as most of the buyers were on the sidelines ahead of the Pakistan Cotton Ginners Association (PCGA) arrival figure report, dealers said. The official spot rate did not show any change in its overnight level at Rs 1,825 without upcountry expenses. No any significant changes were witnessed in the cotton prices, holding its overnight rate in Sindh at Rs 1,650 - Rs 1850.
The same trend was seen in Punjab, holding previous rate at prices quoted at Rs 1,750-Rs 1,875. Phutti was available at Rs 700 - Rs 820 in Sindh and at Rs 775 - Rs 850 in Punjab.
According to the market sources, cautious buying was seen by some buyers to meet their urgent demand. Most of the buyers were anticipating that the prices will come down after the release of the PCGA data.
Mills were also conspicuous by their absence as they have covered the near-term positions, brokers observed.
Overseas brokers said the New York cotton futures tumbled on grower and trade sales. The key March cotton contract on the New York Board of Trade slid 0.89 cent to conclude at 43.89 cents a lb, moving from 43.25 to 44.78 cents. Spot December contract fell 0.77 to 47.88 cents. Two contracts aside, the rest lost 0.20 cent.
Following deals were reported: 1,000 cotton bales from Rajanpur at Rs 1,900, 2,000 bales from Rahimyar Khan at Rs 1,875-Rs 1900, 1,800 bales from Bhawalpur at Rs 1,875, 1,000 bales from Ahmedpursharkia at Rs 1,875, 1,200 bales from Lodhran at the same rate, 1,000 bales from Kakarorpakka at Rs 1,875, 1,600 from Yazman at Rs 1,875, and 1,500 bales from Uch Sharif at the same price.

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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      1825.00        50                    1875.00

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

40 Kgs         1956.00        50                    2006.00

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