Cotton prices may go up on shortage fear

All the eyes were set on the Monday's TCP auction and players on the cotton market on Friday guessing that the corporation to get enhanced rates in the coming days, dealers said. The Karachi Cotton Association (KCA) official spot rate was unchanged at Rs 2325, without upcountry expenses.
The Trading Corporation of Pakistan is short of unsold stock of cotton and it is expected that the prices may rise due to this factor also.
On the other hand, continued rains in the cotton growing areas, as was expected, hurt the standing crop slightly, cotton analysts said.
Reuters added: The NY cotton futures higher on speculative fund buying and most players shrugged off bomb explosions in London which killed 50 and wounded scores of others, analysts said.
The New York Board of Trade's December cotton contract rose 0.92 cent to end at 55.88 cents a lb, moving from 54.82 to 56.35 cents. Spot July fell 0.20 to 50.90 cents. The rest rose 0.75 to 0.86 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      2325.00        50                    2375.00

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

40 Kgs         2492.00        50                    2542.00

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