Ginners resume buying phutti, activity picks up

Trading of seedcotton restarted as ginners ignored the call to stop purchasing of phutti due to contamination, dealers said on the cotton market on Tuesday. The Karachi Cotton Association (KCA) official spot rate was unchanged at Rs 3075, dealers said.
In ready business, trading was seen between Rs 3050-3185, some dealers said. Phutti prices in both Punjab and Sindh were at Rs 1450-1500, they added. According to the market sources, prices maintained a certain level as buyers were active to make new deals and it is expected that prices may not fluctuate sharply in the near future.
In fact, how can the spinners stop their business? They have to keep the machines moving, they said. Some ginners were of the view that they stopped buying of seedcotton as growers were adding moisture and wood chips to increase weight and selling the stuff at higher rates.
Downward trend was seen in the NY cotton market as the market reopened after observing the Thanksgiving holidays on Thursday and Friday. The ICE Futures open-outcry March cotton contract dropped 0.62 cent to finish at 64.92 cents per lb, moving from 64.90 to 65.75 cents. Three contracts aside, the rest fell 0.15 to 1.46 cents. The ICE March electronic cotton contract declined 0.55 to 64.99 cents at 2:51 pm EST (1951 GMT), dealing from 64.90 to 65.92 cents.
The following deals were reported: 800 bales of cotton from Hala sold at Rs 3085, 2400 bales from Shahdadpur at Rs 3075-3085, 1000 bales from Bandhi at Rs 3050, 400 bales from Daur at Rs 3050, 1000 bales from Khipro at Es 3070-3100, 400 bales from Sultanabad at Rs 3100, 2000 bales from Khanewal at Rs 3125-3175, 800 bales from Uch Sharif at Rs 3150, 1000 bales from Ahmedpur Ease at Rs 3150, 1000 bales from Kabirwala at Rs 3125-3150, 2200 bales from Jalalpur at Rs 3150, 2000 bales from Dera Gazi Khan at Rs 3150, 400 bales from Multan at Rs 3125, 400 bales from Noorpur Noranga at Rs 3150, 400 bales from Chani Goth at Rs 3150, 1000 bales from Liquatpur at Rs 3150, 400 bales from Muridwala at Rs 3150, 200 bales from Bhakkar at Rs 3150, 200 bales from Layyah at Rs 3150, 400 bales from Bahawalnagar at Rs 3150, 3000 bales from Rahimyar Khan at Rs 3175 and 2000 bales from Khanpur at Rs 3185, 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      3075.00        50                    3125.00

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

40 Kgs         3295.00        50                    3345.00

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