Tug-of-war between the spinners and ginners started over the prices as both the parties were not ready to oblige each other, dealers said on Tuesday. The Karachi Cotton Association (KCA) official spot rate was unchanged at Rs 2450, without upcountry expenses.
According to the market sources, the ginners held back the unsold stock in anticipation of making big profits in the coming days. On the other hand, mills preferred to be on the sidelines to observe and analyse the developing situation. If the prevailing situation lasted for some more days ginners may lower the asking prices, they said.
REUTERS ADDS: the New York Board of Trade's March cotton contract ended 0.98 cent higher at 53.10 cents per lb, after setting a 52.20 to 53.12 cents range. May cotton added 0.85 to 54.38 cents. Back months were up 0.60 to 0.90 cent by the end. US commodity markets were closed on Thursday and Friday for the Thanksgiving Day holiday and trade resumed on Monday.
Traders said the cotton market performed well all day, with buyers outpacing sellers. "Every time the March contract would get toward 52.80 (a lb on the downside), both trade and speculators bought it all day long. Not a single deal was finalised on Tuesday.
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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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