Firmness prevailed in the cotton market on Monday as demand was high for the best type, especially by the exporters, dealers said. The Karachi Cotton Association (KCA) official spot rate held its overnight level at Rs 2225, without upcountry expenses. According to the market sources, mills' demand for cotton increased on the quality factor and they were also thinking about an expected rise in the prices due to short supplies.
The interesting thing to note was the same situation was observed by the ginners as they did not show any interest in the new selling, especially from Upper Sindh and Southern Punjab, they noted.
Some cotton analysts said that the ginners might unload their stock on apprehension that the new arrivals will start within two-or-three months.
They said that the Trading Corporation of Pakistan (TCP) may gain handsome profits as exporters were satisfied with TCP cotton quality.
There was no confirmation about the final figure of selling of cotton by the TCP in its auction, but relevant sources said that the demand was high for quality cotton .
Meanwhile, a deal of 150 bales of cotton finalised from Rahimyar Khan at Rs 2300 for Karachi delivery.
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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 2225.00 50 2275.00
Equivalent-------------------------------------------------
40 Kgs 2385.00 50 2435.00
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