Mills buy quality cotton at higher rates

After the heavy rains, most of the ginning factories in the country resumed operation, dealers said at the local cotton exchange on Tuesday.
The Karachi Cotton Association (KCA) official spot rate was unchanged at Rs 2,525, without upcountry expenses. The Phutti rates in the Punjab and Sindh were same at Rs 1350, they said.
Market sources said that after the countrywide rains all the ginning factories re-opened, some mills continued buying despite the news that crop size is not as short as speculated earlier. They are purchasing quality cotton on higher rate, an effort to make textile products attractive in the world markets, they said.
Many dealers said that recent rains may hurt the cotton quality slightly, this being the basic reason behind the continued buying on the higher rates.
The second big reason was the views over the next phutti arrival figures as the spinners anticipating that the current pace of arrival may not continue, which will push the rates up, they said.
The following deals were reported: 1500 bales of cotton from Sanghar sold at Rs 2360/2500, 2200 bales from Hyderabad at Rs 2575/2585, 1000 bales from Mamonpur at Rs 2600, 400 bales from Dera Gazi Khan at Rs 2585, 1000 bales from Dolutpur at Rs 2600, 2000 bales from Lodhran at Rs 2600, 1000 bales from Rahim Yar Khan at Rs 2600, 1200 bales from Yazman Mandi at Rs 2550, 400 bales from Mian Chunnu at Rs 2500, 400 bales from Mian Kanjan at Rs 2500, 1000 bales from Uch Shareef at Rs 2590 and 1400 bales from Khanpur at Rs 2600.

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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      2525.00        50                    2575.00

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

40 Kgs         2706.00        50                    2756.00

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