Lint prices, spot rate fall on cotton market

After hitting the season's peak, the prices came down modestly on the cotton market on Friday, dealers said. Resultantly, the Karachi Cotton Association (KCA) official spot rate fell by Rs 25 to Rs 3900, dealers said. In the ready business, phutti prices fell to Rs 1975-2050 in Punjab and in Sindh rates drifted lower at Rs 1950-1975. Cottonseed prices also fell at Rs 775, they added.
In the meantime, trading activity was strong as ginners lowered the asking prices on anticipation of fresh phutti arrivals, leading brokers said. Mills were active and trying to seal the deals at the present levels because rising prices of cotton in the international market were not allowing them space to wait for decline in the rates.
Cotton exporters finalised the deals with the Indian, Bangladeshi and Indonesian counterparts to sell nearly 35-40 thousand bales but to meet the local demand the cotton related people are opposing the export of same because it may cause further rise in imports from other countries, they said.
On Thursday, the NY cotton futures move up on investor buying and short-covering as the market was given a boost by possible losses in the cotton crop in southern Texas from hurricane Dolly, brokers said. The key December cotton contract gained 0.94 cent to finish at 73.86, dealing from 70.77 to 73.90 cent per lb. Fiber contracts booked losses in other markets on investment fund short-covering.
THE FOLLOWING DEALS WERE REPORTED: some 200 bales of cotton from Shadadpur sold at Rs 4150, 900 bales from Sanghar at Rs 4100-4150, 400 bales from Tando Adam at Rs 4100-4125, 500 bales from Hyderabad at Rs 4100-4175, 200 bales from Depalpur at Rs 4150, 200 bales from Haroonabad at Rs 4160, 400 bales from Bahawalnagar at Rs 4150, 200 bales from Gojra at Rs 4150, 800 bales from Sahiwal at Rs 4100-4150-4175, 800 bales from Chichawatni at Rs 4100-4150, 200 bales from Ghaziabad at Rs 4150, 400 bales from Hasilpur at Rs 4100-4170, 200 bales Bahawalpur at Rs 4100, 600 balses from Arifwala at Rs 4100-4150-4200 and 400 bales from Pakpattan at Rs 4100-4150, 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      3900.00       50                     3950.00

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Equivalent

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40 Kgs         4180.00       50                     4230.00

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