Persistent demand keeps rates stable on cotton market

Persisting cotton demand by the mills and exporters helped the prices to maintain the obtaining levels on the local cotton market at the weekend, dealers said.
The Karachi Cotton Association (KCA) official spot rate maintained the overnight level at Rs 3700, they said. Phutti prices in Punjab were at Rs 1925-1975 while rates in Sindh were firm at Rs 1900-1925, they said. Market sources said that it is first time in the history of country that during the month of June-July phutti arrivals have started in the Punjab.
Secondly, approximately, 70 ginning factories have started ginning, giving a positive outlook for the coming days on the textile sector. As a result of good arrival figure, Pak exporters finalised a deal to sell 10,000 bales of cotton, market sources said. Indian importers were in the country and seeking fine quality of cotton, but not ready to pay beyond their psychological levels, they said.
This is a green signal for the Pak mills and exporters, this factor may help prices to hold the firmness, they said. The ginners were happy and trying to sell at the highest levels, as a result most of the deals finalised at Rs 4000. Nearly 1.5 million bales of cotton have arrived at the ginneries, they said. On Friday, cotton futures settled firmer on late investor buying as it bucked weaker grains prices due to underlying bullish fundamentals in the market, brokers said.
The key December cotton contract rose 0.13 cent to finish at 73.24 cents per lb, dealing from 72.50 to 74.16 cents. Volume in the December contract stood at 7,485 lots at 2:49 pm EDT (1849 GMT).
The following deals were reported : some 200 bales of cotton from Hyderabad sold at Rs 3985, 200 bales from Shahdadpur at Rs 3985, 400 bales from Shanghar at Rs 3985-4000, 600 bales from Khanewal at Rs 3985-4000, 1000 bales from Burewala at Rs 4000, 400 bales from Gajjo at Rs 3975-4000, 200 bales from Pir Mahal at Rs 400, 200 bales from Arifwala at Rs 4000, 200 bales from Mian Channu at Rs 3975 and 1000 bales from Chichawatni at Rs 4000, 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     3,700.00        50                   3,750.00

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

40 Kgs        3,965.00        50                   4,015.00

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