Cotton spot rate Rs 25 down despite good activity

Some mills were active buyers on the cotton market on Monday to meet the daily needs and other leading mills were busy in the Trading Corporation of Pakistan's auction, dealers said. The Karachi Cotton Association (KCA) official spot rate shed Rs 25at Rs 2325, without upcountry expenses.
According to the market sources, the TCP received total 79,900 bids by the mills and exporters. The Corporation received for 22,500 bales of cotton bids by the exporters at 41.59-45.27.
In the meantime, the mills bidding for 57,400 bales of cotton (different types) at Rs 2051-2400, dealers said.
Commenting on the current price trend in the TCP auction, cotton analysts said that rates came down from the market expectations as picking season of phutti was stared in Sindh.
They said that good rains and in the absence of any pest attack in the cotton belt, market players were hoping for better production.
But they expect that the prices might not come down sharply as world cotton production estimation is on the lower side.
Following deals were reported; some 200 bales of cotton of Mirpurkhas sold at Rs 2325 and 600 bales of cotton from Sanghar sold at Rs 2350.

===========================================================

The KCA Official Spot Rate for Local Dealings in Pak Rupees

-----------------------------------------------------------

FOR BASE GRADE 3 STAPLE LENGTH 1-1/32"

 MICRONAIRE VALUE BETWEEN 3.8 TO 4.9 NCL

===========================================================

Rate           Ex-Gin     Upcountry    Spot Rate Ex-Karachi

for            Price                        Sales Tax @ 15%

===========================================================

37.32 Kgs      2325.00        50                    2375.00

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

40 Kgs         2492.00        50                    2542.00

===========================================================