Activity picks late, rate touches Rs 3,515 mark

Prevailing vulnerability in the NY cotton futures, encouraged most of the local spinners to remain on the sidelines in anticipation of lower trend in the prices but some of them covered the immediate needs at the present levels, dealers said on the cotton market on Thursday.
The Karachi Cotton Association (KCA) official spot rate was unchanged at Rs 3300. Phutti prices in both Sindh and Punjab were also same at Rs 1200-1600, they said. They said that most of the deals finalised between Rs 3300-3515. Commenting on the lean business in the cotton market these days, some leading brokers said that both buyers and sellers were confident. Ginners are quite sure that they would be able to sell the unsold stock within the psychological level. They observed that on the other hand, the spinners are also looking satisfied as they have already covered their position.
But, they require more to fulfil their export commitments, so they are looking for an opportunity to make up the shortage. Seemingly, the ginners are the real gainer due to short crop in the country and high prices, they observed.
The NY cotton futures gave up firmness on sales by small speculators and the market is expected to drift until release of a key government plantings report next week, brokers said.
The ICE Futures' May cotton contract eased 0.26 cent to end at 73.79 cents per lb, dealing from 73.06 to 75.38 cents. The new-crop December cotton futures shed 0.62 cent to trade at 84.10 cents at 3:01 pm EDT (1901 GMT).
Some 22,000 bales of cotton changed hands on Thursday as 1000 bales of cotton from upper Sindh sold at Rs 3410. 2000 bales from same station at Rs 3300-3410, 2000 bales from Lodhran at Rs 3300, 800 bales from Jahanian at 3515, 1000 bales from Shujabad at Rs 3300, 3000 Bales from Khanpur at Rs 3400 and 2000 bales from Rahimyar Khan at Rs 3400, 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      3300.00        50                    3350.00

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

40 Kgs         3537.00        50                    3587.00

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