Cotton trade, prices up on short arrival report

Trading activity picked up on the cotton market on Saturday as mills increased buying after the short arrival figure by the PCGA, dealers said. The Karachi Cotton Association (KCA) official spot rate maintained the overnight level at Rs 2,525, without upcountry expenses. Some bales of cotton from Rahim Yar Khan sold at Rs 2625, they said.
The Pakistan Cotton Ginners Association (PCGA) issued its fortnightly report till 31 January, the arrival figure was 11.9 million bales of cotton, which was short of 8.9 million bales against the last year of over 12 million bales of cotton, dealers said.
The ginners have now above 1.7 million bales of unsold stock. The short supply of cotton arrival propelled the mills to make fresh deals and the prevailing anticipations in the market that the prices might depict gradual rise in the near future can't dispelled, they said.
The ginners may start increase the asking price but it is expected that the mills might not oblige them as the government is importing cotton to meet the local demand, they said.
Upward trend was seen in the NY cotton market as the New York Board of Trade's March cotton contract closed up 0.32 cent at 53.89 cents per lb after trading 53.50 to 54.10 cents. May rose 0.30 to 54.87 cents and the rest added 0.25 to 0.43 cent.
The following deals were reported : 400 bales of cotton from Tando Adam sold at Rs 2350, 400 bales from Hyderabad sold at Rs 2445, 300 bales from Punjmoro at Rs 2465, 1000 bales from Dadu sold at Rs 2450, 400 bales from Akri at Rs 2485, 200 bales from Shahdadpur at Rs 2475, 5000 bales from Rohri at Rs 2560 /2600, 14000 bales from Rahim Yar Khan at Rs 2600 /2625, 400 bales from Qutubpur at 2565, 400 bales Bhwana at Rs 2475, 400 bales from Multan at Rs 2475 and 400 bales from Tubtek Sing at Rs 2475.

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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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