Active mills' buying seen on cotton market

Active mills' buying persisted on the cotton market on Friday following the continued rise in the prices, brokers said. The Karachi Cotton Association (KCA) official spot rate remained at Rs 2850, they added. In ready business, deals finalised between Rs 2900-3100, they said.
The Phutti arrival is slow despite the fact that rains have stopped for the last couple of week, dealers said. This factor has pushed the phutti prices higher in both Punjab and Sindh. The price of phutti in Punjab is now at Rs 1300 and in Sindh the same is trading at Rs 1250 per 40kg, they said. The ginners showed no hurry in selling the unsold stock as they have very small quantity to dispose off, they said.
The New York cotton futures moved up, the New York Board of Trade's key December cotton contract settled 0.13 cent higher at 67.05 cents per lb. The day's range spanned 66.30 to 67.35 cents, but fell short of the 67.50 high hit on Wednesday, which dates back to March 2004. Most other contracts closed with gains of 0.05 to 0.55 cent, with the December 2008 contract setting a new lifetime peak.
The Intercontinental Exchange NYBOT electronic cotton market's December contract increased 0.21 cent to 67.13 cents a lb. by 3:43 pm. The following deals were reported : 400 bales of cotton from Burelawala sold at Rs 3100, 200 bales from Sultanabad at Rs 2900, same figure from Khanpur at the same rate, same figure from Sahiwal at Rs 3100 and 100 bales from Pakpatan at the same rate.

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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      2850.00        50                    2900.00

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

40 Kgs         3054.00        50                    3104.00

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