Upward trend continued on the cotton market on Saturday as official spot rate was raised sharply in process of trading, dealers said. The official spot rate was increased by Rs 100 to Rs 4125 in a single day rally, they said. In the ready business the prices of phutti came down modestly at Rs 1875-1925 in Sindh while in the Punjab rates were higher at Rs 1900-2025, they said.
The main factor behind the low business was decreased buying by the mills and exporters, who kept on the sidelines after falling trend in the dollar's value, they said. Secondly, the ginners were not ready to lower the prices further though phutti arrivals are expected in good number due to favourable weather, they said.
They (mills) may be expecting a sharp fall in the phutti prices as news reaching the market that there is not much fear about the pest attack on the standing crop, they said.
According to the market sources, cotton is not reaching the Karachi mills due to transporters' strike, if cotton catches fire, it may be a great loss. In the absence of political stability, businessmen are confused before finalising any future deal, hence political settlement is a must for confidence building among the people belong to all walks of life, they said.
Commenting on the buying of cotton through the last several sessions during the week, they said that dollar's gains prompted some advantage-taking buying. On Friday, the NY cotton futures settled with modest declines as the key December cotton contract closed down 21 cents at 69.63 cents a lb. The contract set a range between 68.91 and 70.19 cents a lb, but held below the one-week high at 70.28 set on Thursday.
After hours, cotton edged up two cent to 69.86 cents. December contract turnover was a light 5,393 lots by 2:59 pm EDT (1859 GMT). Cotton's rally off of an 11-1/2 month low at 66.79 a lb provided definitive near-term direction - traders said.
The following deals were reported : 2000 bales of cotton from Tando Adam sold at Rs 4150-4200, 1000 bales from Sanghar at Rs 41500-4175, 400 bales from Sanjhoro at Rs 4200, 3000 bales from Shadadpur finalised at Rs 4150-4200, 600 bales from Jhole at Rs 4200 and 800 bales from Burewala at Rs 4100-4200, 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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37.324 Kgs 4,125.00 100 4,225.00
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Equivalent
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40 Kgs 4,421.00 100 4,521.00
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