Spot rate was higher on the cotton market on Friday on hovering fears about the size of production for the next season due to water shortage, dealers said. The official spot rate was higher at Rs 2450, without upcountry expenses.
Leading brokers were of the view that the cotton market is in grip of speculations that the prices may go up further on rising demand as some mills had to enter the market to meet their requirements.
The market participants were expecting that under the new development apprehended due to water shortage the Trading Corporation of Pakistan (TCP) may opt to stop selling to the foreign buyers.
In the meantime, the ginners were taking benefit from the emerging situation on the cotton front, they said.
ACCORDING TO THE REUTERS: the New York Board of Trade's July cotton contract increased by 0.87 cent to settle at 51.31 cents a lb, dealing from 50.35 to 51.40 cents. New-crop December rose 0.93 to 55.82 cents. The rest went up 0.50 to 1.30 cents.
Following deals were seen as 1800 bales of cotton from upper Sindh sold at Rs 2480, 8000 bales of cotton from Jahanian at Rs 2500, 400 bales from Makhdoom Rasheed and 500 bales from Rahimyar Khan at the same rate.
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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 2450.00 50 2500.00
Equivalent-------------------------------------------------
40 Kgs 2626.00 50 2676.00
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