A few deals materialised on cotton market

Modest trade was seen on the cotton market on Wednesday as ginners tried to dispose off the unsold stock at the prevailing price levels, dealers said. The Karachi Cotton Association (KCA) official spot rate was unchanged at Rs 2675, without upcountry expenses.
Nearly 2300 bales of cotton sold as the deals finalised between Rs 2575-2650, they added. Under the prevailing circumstances the ginners were under pressure preferring to sell lint cotton on the quality factor and lesser profit. The news of import of cotton and continued sliding trend in the New York cotton futures were adding factors behind change of attitude by the ginners, analysts said.
The country has to import cotton to meet the local consumption and also meet the export commitments. Meanwhile mills were looking in relaxed mood and have started purchasing below the psychological level, they said. The New York cotton futures were higher as the New York Board of Trade's open-outcry July cotton contract rose 0.83 cent to finish at 47.75 cents per lb., trading between 47.10 and 47.90 cents.
New-crop December added 0.61 cent to 52.30 cents and the rest contracts rose 0.20 to 0.75 cent. Intercontinental Exchange's NYBOT electronic platform for cotton showed the July contract up 0.83 cent at 47.75 cents at 2:27 pm.
The following deals were reported: 500 bales of cotton from Shujabad sold at Rs 2575, 1300 bales from Lodhra at Rs 2600 and 500 bales of cotton from Hyderabad at Rs 2650.

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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      2675.00        50                    2725.00

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

40 Kgs         2867.00        50                    2917.00

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