A few transactions were seen on the cotton market on Tuesday as mills made some buying in anticipation of fresh increase in the prices, dealers said. The Karachi Cotton Association (KCA) official spot rate was unchanged at Rs 2600, they added.
Thin activity was seen between Rs 2525-2600 in the ready business, they said. Rain in the cotton growing areas made the spinners cautious so they struck deals despite higher trend in the prices, they said.
According to the market sources, ginners were enjoying the new situation as they had lost the hope of earning better profit in the coming days. The New York cotton futures moved down as the New York Board of Trade's open-outcry July cotton contract closed down 0.17 cent at 54.75 cents per lb. after trading from 54.45 to 55.25 cents.
On Friday, the contract ended at 54.92 cents, the highest close for cotton since 55 cents in March. The key December cotton contract shed 0.50 cent to 59.18 cents, with the rest months flat to 0.40 cent lower. Intercontinental Exchange's NYBOT electronic cotton market showed the July contract off 0.09 cent at 54.83 cents at 2:33 pm.
The following deals were reported as 200 deals of cotton from Sultababad were finalised at Rs 2525 (August 15, 2007 delivery) and 400 bales from Shahdadpur at Rs 2600 (exporter to mill Karachi delivery) 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 2600.00 50 2650.00
Equivalent-------------------------------------------------
40 Kgs 2786.00 50 2836.00
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