Mills buying enhances cotton prices

Firmness prevailed in the cotton market on Saturday as mills' demand accelerated on anticipation of increase in the prices, dealers said. The official spot rate maintained its overnight level at Rs 2150, without upcountry expenses. Cotton prices showed further rise in both the Punjab and Sindh at Rs 2250-2275, dealers said. The phutti prices maintained its previoust level at Rs 900-1050 in Sindh and Punjab.
According to the market sources, the ginners are asking for Rs 2250-2300 for best type of cotton. In the meantime, some mills made buying to meet the urgent demands, they said.
Exporters were conspicuous by their absence, they said. Heavy rains hurt the cotton's quality, which is a factor behind the rise in the prices, they added.
Following deals were reported: 2000 bales of cotton from Sangher at Rs 2075, same number from Upper Sindh at Rs 2200-2225, 3000 bales from Khanpur at Rs 2200 and 500 bales from Gojra at Rs 2150.
Some brokers said that the NY cotton futures settled with slight gains on modest speculative buying, with switch trade the main order of business from players liquidating positions in the spot March contract.
The New York Board of Trade's key March cotton contract rose 0.21 cent to conclude at 44.95 cents a lb, in a band from 44.75 to 45.30 cents. It was the best close for cotton on a spot basis since ending at 46.78 cents on January 26.
May contract added 0.32 to 46.19 cents. Except for two contracts, the rest increased 0.10 to 0.17 cent.

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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      2150.00         50                   2200.00

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

40 Kgs         2304.00         50                   2354.00

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