Business volume drops, spinners not paying higher prices

Modest business was seen on the cotton market on Monday as prices maintained a firm posture following the rising perception about the size of crop for the current season, dealers said.
The Karachi Cotton Association (KCA) official spot rate was inert at Rs 2375, without upcountry expenses. Phutti prices in Sindh were at Rs 1125-1225 and in Punjab at Rs 1125-1175, dealers said.
The current position in the cotton market was little different as both the buyers and sellers adopted cautious attitude to formulate their next strategy, leading brokers said. The main factor, which is dominating the market, was whispers about the expected fall in the cotton production that may cause further rise in the prices, they said.
The ginners were asking higher prices and the spinners were not ready to oblige them as according to some mills, they have enough stock to meet the near-term demand, dealers said.
The following deals were reported: 1000 bales of cotton from Shahdadpur sold at Rs 2375, same figure from Tando Adam at Rs 2350, same figure from Sanghar at Rs 2340-2350, same figure from Mehrabpur sold at Rs 2395, same figure from Nawabshah at Rs 2350-2375, same number from Alipur at Rs 2450, same figure from Ahmedpur at Rs 2460, 400 bales from Uch Sharif at Rs 2450, 1000 bales from Sadiqabad at the same rate, same figure from Khanpur at Rs 2460, same number from Rahim Yar Khan at Rs 2450-2460, 600 bales from Pir Mahal at Rs 2450, 1000 bales from Muridwala at Rs 2450 and 600 bales from Rajanpur at the same rate.

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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      2375.00         50                   2425.00

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

40 Kgs         2545.00         50                   2595.00

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