Cotton spot rate cut by Rs 25

Lean business was seen on the cotton market on Friday as mills remained on the sidelines on expectations of lower trend in the prices due to good crop, brokers said. The official spot rate, after remaining stable, lost Rs 25 to Rs 2,550 without upcountry expenses.
Market sources said that the ginneries in Burewala, Chichawatni and Sahiwal have started operation as early sown phutti arrived. The mills are still in a commanding position and not willing to buy cotton at the prevailing rates, dealers said. They said that the spinners were waiting for the proper time to cover their immediate needs.
ACCORDING TO THE REUTERS: the New York Board of Trade's December cotton contract fell 0.70 cent to conclude at 53.01 cents per lb, in a band from 52.90 to 53.50 cents. It was an inside day since the range was within Wednesday's 52.80 to 54.05 cents band. March slid 0.73 to 56 cents. Distant months declined from 0.43 to 0.75 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      2550.00        50                    2600.00

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

40 Kgs         2733.00        50                    2783.00

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