Mills accelerate quality cotton buying

Accelerated buying was seen on the cotton market on Saturday as mills preferred to make new deals, brokers said. The Karachi Cotton Association (KCA) official spot rate was unchanged at Rs 2,525, without upcountry expenses. In the Punjab and Sindh, the Phutti prices maintained the overnight levels at Rs 1325-1350, they said.
The prevailing rates in cotton market were above the export parity levels but some leading spinners were buying best type of cotton to meet the export requirements, they said.
The ginners were taking advantage of speculations of short supplies and raising the asking prices, they said. The government would have to allow cotton import to meet the shortage of good quality, they said.
Reuters adds: the New York Board of Trade's March cotton contract fell 0.33 cent to end at 52.73 cents per lb, trading from 52.70 to 53.25 cents. May cotton shed 0.24 to 54.11 cents. One contract aside, the rest went up 0.10 to 0.25 cent.
The following deals were reported: 1000 bales of cotton from Sanghar sold at Rs 2450/2525, 1000 bales from Kahirpur at Rs 2525, 400 bals from Dadu at Rs 2525, 2000 bales from Bahawalpur at Rs 2600, 2000 bales from Dera Gazi Khan at Rs 2600, 2000 bales from Mirpur at Rs 2600, 1000 bales from Ahmedpur East at Rs 2600, 2200 bales from Jahanian at Rs 2600, 400 bales from Taranda at Rs 2600, 400 bales from Layyah at Rs 2600, 400 bales from Hasilpur at Rs 2550, 400 bales from Chichawatni at Rs 2590, 600 bales from Lodhran at Rs 2600, 400 from Jalalpur at Rs 2600 and 200 bales from Yazman Mandi 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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