Stable trend seen on cotton market

Stable trend was seen on the cotton market on Saturday as the ginners did not lower the asking prices as they have small unsold stock, dealers said. The Karachi Cotton Association (KCA) official spot rate was unchanged at Rs 2650, without upcountry expenses.
The only deal of finest type was reported at Rs 2725, they said. They said that the mills were covering their needs from both the foreign and local sellers, paying higher prices for the best quality. Falling trend in the international markets attracted the mills nearly two-three months but now the prices have started going up.
This trend may propel the mills to look at the local cotton and this factor is likely to encourage the ginners to raise the asking prices. Some brokers said that to meet the local demand the production of Bt quality cotton should increase as India is benefiting after adopting the same. In Pakistan currently 85-90 percent of Bt quality cotton is sown to fulfil the mills' demand, they said.
Bullish sentiment was persistent in the NY cotton market as the New York Board of Trade's open-outcry July cotton contracts climbed 1.05 cents to finish at 51.14 cents per lb., near the top of its 50.50 to 51.20 cents band. The cotton market is shut on Monday for a holiday, with business resuming on Tuesday.
It was the highest close for cotton on a spot basis since ending at 51.37 cents on April 13. The new-crop December cotton contracts rose 1.05 cents to 56.20 cents.
The rest gained 0.95 or 1.05 cents. Intercontinental Exchange's NYBOT electronic cotton market showed the July contract up 1.01 cents to 51.10 cents at 2:34 pm a deal of 200 bales of cotton was reported from Vehari at Rs 2725, they said.

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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      2650.00        50                    2700.00

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

40 Kgs         2840.00        50                    2890.00

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