Spot rate lowered in thin business on cotton market

Spot rate was lower modestly on the cotton market on Tuesday as the mills were not ready to pay price higher than their psychological levels, dealers said. The official spot rate was lower by Rs 25 to Rs 2450, without upcountry expenses.
Some dealers said that both ginners and mills were not prepared to change their attitudes towards the price line. It is expected that the ginners may show some flexibility by lowering prices of cotton, they added.
It's a very difficult position as spinners were offering lower prices and "we (ginners) bought lint at the official support price and they were insisting to lower the prices."
Meanwhile The Karachi Cotton Association (KCA) has stated issuing the rates of new cotton crop and stopped issuance of old crop, the news that drought hit the Texas cotton, may not bring any big change in the present scenario in the local market, because the cotton production is good and might not suffer from the rains, they said.
Under the circumstances change of attitudes to sell the unsold stock from the ginnsers will be in favour of them, otherwise they may be the losers, they said. Signals from the New York cotton markets were negative, which was an aiding factor behind the easier trend in the local markets, dealers said.
The New York Board of Trade's December cotton contract fell 1.08 cents to finish at 54.66 cents per lb, moving from 54.62 to 55.50 cents. March shed 1.19 to 57.64 cents. The back months declined 0.40 to 1.30 cents. A solo deal of 200 bales of cotton from Tando Alahyar was struck at Rs 2450, dealers said.

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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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