Business regains momentum on cotton market

Trading activity picked up on the cotton market on Saturday as many spinners covered their forward needs despite the news of short staple cotton import, dealers said. The Karachi Cotton Association (KCA) official spot rate was unchanged at Rs 3000, market players said.
In ready business, prices fluctuated between Rs 2975-3175, some traders said. Phutti prices in both Punjab and Sindh showed no change in the overnight levels at Rs at 1350-1425, dealers said.
Some brokers said that most of the mills did not wait for the lower trend in the prices and entered into forward deals to save themselves from the future losses. Fears of expected price rise in the coming days due to short crop, propelled them to make huge buying, they said.
The trend in the NY cotton market was higher as the ICE Futures open-outcry March cotton contract climbed 0.94 cent to finish at 65.85 cents per lb, trading from 64.62 to 65.90 cents. On a spot closing basis, it was the highest finish for cotton since the middle of July. May rose 0.86 to 67.22 cents. One contract aside, the rest were flat to up 1.10 cent. The ICE March electronic cotton contract was up 0.93 cent to 65.84 cents at 2:54 pm EST (1954 GMT), with volume in the contract at 9,655 lots.
The following deals were reported: 200 bales of cotton from Khipro sold at Rs 2975, 400 bales from Shahdadpur at Rs 3000, 2000 bales from Khairpur at Rs 3025, 2600 bales from upper Sindh at Rs 3115, 400 bales from Lodhran at Rs 3100, 3000 bales from Khanewal at Rs 3150, 600 bales from Alipur at Rs 3100-3140, 400 bales from Shadan Lund at Rs 3100, 600 bales from Fazilpur at Rs 3100, 200 bales from Rajanpur at Rs 3100, 200 bales from Bahawalpur at Rs 3100, 400 bales from Ahmedpur at Rs 3100, 200 bales from Mongi Bangla at Rs 3100, 400 bales from Jampur at Rs 3100, 200 bales from Sadiqabad at Rs 3100, 400 bales from Layyah at Rs 3125, 400 bales from Jalalpur at Rs 3140, 1000 bales from Rahim Yar Khan at Rs 3175 and 5000 bales from Kabirwala at Rs 3175, they said.

===========================================================

The KCA Official Spot Rate for Local Dealings in Pak Rupees

-----------------------------------------------------------

FOR BASE GRADE 3 STAPLE LENGTH 1-1/32"

 MICRONAIRE VALUE BETWEEN 3.8 TO 4.9 NCL

===========================================================

Rate           Ex-Gin     Upcountry    Spot Rate Ex-Karachi

for            Price                        Sales Tax @ 15%

===========================================================

37.32 Kgs      3000.00        50                    3050.00

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

40 Kgs         3215.00        50                    3265.00

===========================================================