Business improves on cotton market

Improved business was seen on the cotton market on Wednesday as mills entered market to buy the fine quality lint, dealers said. The official spot rate was unchanged at Rs 2400, without upcountry expenses.
Prices held firmness on the increased demand. Nearly 10,000 bales of cotton changed hands in the ready section, they said.
Some dealers said the crop size was at 12.372 million bales of cotton according to the report issued by the Pakistan Cotton Ginners Association (PCGA). They also said that Trading Corporation of Pakistan (TCP) issued tender of 50,000 bales of cotton last week, from which it sold 38,000 bales to the mills and exporters.
According to break down exporters bought 20,000 bales of cotton and mills purchased 18,000 bales from TCP.
The spinners were a little bit active these days on production short fall from the estimated target. The government estimated 13 million bales of cotton for the current season.
ACCORDING TO THE REUTERS: the New York Board of Trade's May cotton contract added 0.24 cent to end at 52.81 cents a lb, in a band from 52.40 to 53.10 cents. July rose 0.10 to 54.67 cents. The rest gained 0.05 to 0.33 cent.
Following deals were reported : 800 bales of cotton from Sanghar sold at Rs 2325, 400 bales from Sadiqabad at Rs 2400, 3600 bales from Rahimyar Khan at Rs 2475, 1400 bales from Feroza at Rs 2340, 1600 bales from Khanpur at Rs 2475 and 2000 bales from Mehmoodabad at Rs 2425.

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

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      2400.00        50                    2450.00

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

40 Kgs         2572.00        50                    2622.00

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