Rising trend persisted on the cotton market on Saturday as mills were active to cover the forward buying in anticipation of further rise in the rates, dealers said. The official spot rate was increased by Rs 50 to Rs 3400, they said. In the meantime, the phutti prices in both the Punjab and Sindh were unchanged at Rs 1650-1800. As a result of increase in the spot rate prices also went up in the ready business at Rs 3490, they added.
Commenting on the upward trend in the cotton prices some leading observers were of the opinion that expectations for betterment in exports and short production are pushing the prices up. Now its ginners' time, who can increase the asking prices more to maximise profits, they added that the perception of lifting of exports may give a boost to the prices in the near future. Fine quality of cotton is not available easily and this is the one of the factor which is propelling the mills to grab every lot, they said.
On Friday, the NY cotton futures settled slightly firmer on investor buying likely tied to options expiration of the March contract while the trade awaits release of a pair of crop reports next week, brokers said. The key March cotton contract increased 0.15 cent to close at 49.86 cents per lb, trading between 49.47 and 50.45 cents. Volume traded in the March contract was at 10,563 lots at 2:47 pm EST (1947 GMT). The May contract added 0.09 cent to end at 50.43 cents.
THE FOLLOWING DEALS WERE REPORTED: 400 bales of cotton from Saleypat sold at Rs 3350, 4200 bales from Dahrki at Rs 3490, 800 bales from Ghotki at Rs 3400, 200 bales from Khan Pur at Rs 3275, 400 bales from Mian Channu at Rs 3350, 400 bales from Kabirwala at Rs 3425, 400 bales from Faqirwali at Rs 3250, 400 bales from Burewala at Rs 3440, 400 bales from Rahim Yar Khan at Rs 3450, 400 bales from Rahim Yar Khan at Rs 3375, 2000 bales from Noor Pur at Rs 3375 and 600 bales from Rajan Pur at Rs 3350, 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 3,400.00 100 3,500.00
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Equivalent
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40 Kgs 3,644.00 100 3,744.00
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