Spot rate was higher on the cotton market on Monday as mills made fresh purchasing despite upward trend, brokers said. The Karachi Cotton Association (KCA) official spot rate commenced the week on a firm note, showing fresh gain of Rs 50 to Rs 2625, without upcountry expenses.
Market sources said that prices maintained upward trend due to tight supplies and strong demand. The ginners were on the safe side as prevailing situation is favouring them, they added. They said that the monsoon rains have damaged the standing cotton crop as a result may not help in achieving the production target set earlier.
But some leading spinners did not oblige them and chose to wait for the time being, so they can make the better decision for the forward buying. In the meantime some of them continued buying despite the higher prices to save themselves from losses, they said.
Following deals were reported: some 1000 bales of cotton sold at Rs 2600-2625, same figure from Tando Adam at Rs 2600-2675, same number from Shahdadpur at the same rate, 800 bales from Hyderabad at Rs 2600-2685, 400 bales from Pir Mahal at Rs 2750, same figure from Chichawatni at the same rate, 600 bales from Burewala at Rs 2725-2750, 400 balea from Sahiwal at the same rate and 400 bales from Arifwala at Rs 2725.
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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 2625.00 50 2675.00
Equivalent-------------------------------------------------
40 Kgs 2813.00 50 2863.00
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