Steady trend was again seen on the cotton market on Tuesday as mills continued forward buying in anticipation of further increase in the rates, dealers said. The official spot rate was unchanged at Rs 3400, they said. The phutti prices in both the Punjab and Sindh were unchanged at Rs 1650-1800. In the ready business highest rate was at Rs 3500 for the second day, they added.
According to the market sources, expectations about the rise in export products despite the world recession kept mills in touch with the latest developments on the textile fronts. Because after a gap some hopes are coming up that exports may show improvement in days to come, they said. So, they did not take a sigh of relief and made buying as much as they could meet the urgent requirement, some brokers said.
Short crop news and some improvement in exports, helping the prices to keep upward trend, they said adding that other factor behind the ascent in the local rates is higher trend in the world market, which is making import of cotton expensive.
On the other hand the cost of export items production is also becoming high and this factor is hurting export competitiveness. As a result attraction for the foreign buyers is diminishing, they said. They also said it is interesting to note that the ginners were taking advantage of the prevailing circumstances.
On Monday, the NY cotton futures closed with slight gains on investor buying as most players tweaked positions ahead of the release of a government crop report on Tuesday, brokers said.
The key March cotton contract crawled up 0.12 cent to close at 49.98 cents per lb, moving from 49.69 to 50.34 cents. It was an inside day as the range held within Friday's 49.47 to 50.45 band. Volume traded in the March contract was at 8,019 lots at 2:41 pm EST (1941 GMT). The May contract added 0.18 cent to end at 50.61 cents.
The following deals were reported: 600 bales of cotton from Rohri sold at Rs 3300, 600 bales from Jahanian at Rs 3400, 1000 bales from Shujabad at Rs 3400, 1000 bales from Mian Channu at Rs 3400, 400 bales from Ghaziabad at Rs 3400, 400 bales from Haroonabad at Rs 3375, 600 bales from Rajan Pur at Rs 3300, 7000 bales from Rahim Yar Khan at Rs 3500, 800 bales from Rahim Yar Khan at Rs 3450, 400 bales from Dera Ghazi Khan at Rs 3400, 400 bales from Fazil Pur at Rs 3325 and 400 bales from Jalal Pur at Rs 3400, 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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