Business limited to solo deal due to high prices on cotton market

Sluggish business was seen on the cotton market on Monday as leading buyers remained on the sidelines due to higher prices, dealers said. The spot rate was unchanged at 2525, without upcountry expenses.
Market sources said that the ginners find themselves in strong position as they did not show any change in price line policy. Some brokers said that spinners were making deals to meet their urgent needs.
They said that the mills preferring to purchase cotton from the Trading Corporation of Pakistan (TCP) also to save themselves from future losses.
It is expected that they (mills) might make big deals on June 29 auction by the TCP. Clear-cut direction in the market may not emerge till the arrival of new crop, they said. A solo deal of 400 bales of cotton from Sarhari was struck at Rs 2600.

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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      2525.00        50                    2575.00

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

40 Kgs         2706.00        50                    2756.00

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