Rains in cotton-belt in Punjab may cause problems in phutti transportation in the short run and also help in stabilising the prices , dealers said at the cotton market on Monday. The Karachi Cotton Association (KCA) official spot rate was unchanged at Rs 3750, dealers said.
Rains started in most part of Punjab and it could be a factor behind the slowdown in arrivals, they said. According to the market sources, since the phutti arrival started, the prices came down and it seems that prices may show further weakness in the coming days. They also said that uncertainty about the size of total crop may be a leading factor for both mills and ginners. Some broker said few sessions were dull last week as the mills were on the sidelines on expectations that the rates may come down more following the arrival of phutti.
In ready business phutti prises fell in Punjab to Rs 1600 and in Sindh the rate was at Rs 1700. Cotton analysts said the cost of production turned higher after the rise in the oil prices and other factor is contamination, which caused fall in the textile goods export. Now the fact is that the ginners may try to make deals at the lower rates of fine types as prices showed softness last week. The following deals were reported as some 200 bales from Burawala sold at Rs 3900 and 100 bales from Arif Wala sold at Rs 3800, 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 3,750.00 50 3,800.00
Equivalent-------------------------------------------------
40 Kgs 4,019.00 50 4,069.00
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