Exporters' entry increases activity, prices on cotton market

Exporters' entry pushed the prices higher on the cotton market on Monday, dealers said. The Karachi Cotton Association (KCA) official spot rate was up by Rs 50 at Rs 2875, dealers said. Phutti prices in Punjab were lower at Rs 1325-1370 and it was trading at Rs 1400-1450 in Sindh, they said.
Entry of exporters is likely to cause further rise in the prices, they said. Demand has increased for the local cotton due to reasonable rates, they said. Resulting a deal of 400 bales from Khanewal done at Rs 2950.
Commenting on the strong demand by the mills, brokers said that both the buyer and seller were at the meeting point. The mills have to buy cotton to meet the export commitments. On the other hand, the present trend in the prices were matching with the ginners' psychological levels and selling them in a big way, they added. But one thing is positive that the production figure is good and the country may need to import cotton but just to meet the shortfall.
The following deals were reported: 1200 bales of cotton from Shahdadpur at Rs 2900/2915, 1000 bales from Tando Adam at Rs 2900/2915, 1000 bales from Sanghar at Rs 2885/2900, 600 bales from Khipro at Rs 2875/2900, 800 bales from Mirpurkhas at Rs 2965/2900,1000 bales from Khanewal at Rs 2900/2925, 400 bales feom the same station at Rs 2950, 400 bales from Fazilpur at Rs 2900, 200 bales from Manghi Banglow at Rs 2900, 600 bales from Hasilpur at Rs 2890, 600 bales from Gujjo at Rs 2875, 400 bales from Sahiwal at Rs 2875, 1000 bales from Burewala at 2865/2875, 400 bales from Pakpattan at Rs 2865, 400 bales from Vehari at Rs 2850, 400 bales from Muridwala at Rs 2850 and 200 bales from Iqbal Nagar at Rs 2850, dealers 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      2875.00        50                    2925.00

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

40 Kgs         3081.00        50                    3131.00

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