Prices gain boost in cotton market

Fine quality of cotton mostly from the Punjab showed upward trend in the market as the spot rate also rose higher on Monday, brokers said. The Karachi Cotton Association (KCA) official spot rate was higher by Rs 50 at Rs 2,625, without upcountry expenses.
According to the market sources, cotton prices went up on rising fears that the more rains may hit the production and quality. Due to best quality of cotton, some hundred bales of cotton from Burewala sold at Rs 2750, dealers said. They said that it is likely the growers may take advantage of prevailing situation and sell the cotton at the higher prices.
To be on the safe side, many ginners from the Punjab were buying phutti or seed-cotton by the Sindh growers. Most important thing is that the situation will be clear after the Pakistan Cotton Ginners Association (PCGA) report, they said.
Following deals were reported as 200 baales of cotton from Shahdadpur at Rs 2,675, 600 bales from Mirpurkhas at Rs 2,600, 200 bales from Pak Pattan at Rs 2,725, 200 bales from Burewala at Rs 2,750 and same figure from Khanewal at Rs 2,725.

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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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