More rains may push cotton prices sharply up

In case of more rains in the cotton growing areas, cotton prices may go up sharply and might touch new highs in the coming days, dealers in the cotton market said on Tuesday. The Karachi Cotton Association (KCA) official spot rate was unchanged at Rs 2950, they said.
Phutti (seed-cotton) prices were up and ranged from Rs 1375 to Rs 1400 in Sindh and from Rs 1525 Rs 1550 in Punjab, they said. Lint was trading between Rs 3025 and Rs 3200, they said. According to market sources, the third round of rains in Punjab was likely to play havoc and push the prices to new high.
There were reports that few deals were finalised at Rs 3250 to Rs 3300. Spinners were unhappy, but continued buying to meet their near-term demands, some brokers said. In the meantime, ginners were hoping for good profit of margin in the near future, they added.
The cotton market is moving on the demand and supply scernario, they said. Tight supplies may give rise to reason for import of cotton by mills, they added. NY cotton market commenced the week on a positive note. December contract settled up 1.18 cents at 58.68 cents per lb after trading 58.28 to 59.25 cents. March rose by 1.25 cent to 62.20 cents.
The rest gained from 1.28 to 1.40 cents. The Intercontinental Exchange NYBOT electronic cotton market showed December cotton up 1.25 cents at 58.75 cents by 2:31 pm EDT (1831 GMT), moving from 57.50 to 59.25 cents.
Following deals were reported: 1000 bales of Shahdadpur at Rs 3050, 1000 bales of Tando Adam at Rs 3025/3075, 400 bales from Hyderabad at Rs 3050, 1600 bales from Sanghar at Rs 3025/3050, 600 bales from Khipro at Rs 3050, 400 bales from Arifwala at Rs 3150, 1000 bales from Burewala at Rs 3125/3150, 400 bales from Haroonabad at Rs 3125, 200 bales from Pul Bagar at 3150, 200 bales from Pir Mahal at Rs 3200, 200 bales from Pakpattan at Rs 3200, 200 bales from Chichawatni at Rs 3200 and 200 bales from Mangi Banglow at Rs 3200.

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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      2950.00        50                    3000.00

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

40 Kgs         3162.00        50                    3212.00

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