Stable trend was seen on the cotton market on Friday despite the prediction for higher-than-expected production, dealers said. The official spot rate was unchanged at Rs 3,350; they said. Phutti prices in Punjab were unchanged at Rs 1,800-1,825 while in Sindh, the rates moved up with modest rise of Rs 25 to Rs 1,750-1,775; they said.
Some 600 bales of cotton changed at Rs 3350, they said. Commenting on the firm trend in the prices, some analysts said that the mills were interested in buying of fine quality cotton at the reasonable levels, as the ginners were not lowering the asking prices.
The mills are busy in purchasing of forward buying despite the news that the cotton production may exceed the target for the current season, they said. Many farmers from Ghotki and Dharki, Badin and Sanghar were taking interest in sowing of rice crop due to lucrative rates but the government is not allowing them to do so, they said.
On Thursday, the NY cotton futures settled slightly firmer on investor buying before a holiday weekend, but analysts feel the market is due for a pullback, given the troubled economic outlook. The new-crop December cotton contract rose 0.44 cent to close at 60.92 cents per lb, dealing from 59.33 to 61.29 cents. December volume 7,709 lots at 2:38 pm EDT (1838 GMT). March added 0.47 cent to end at 63.19 cents.
The cotton market will be closed Friday for the July 4 US Independence Day holiday. Trading resumes on Monday. The following deals were reported as some 200 bales from Mirpurkhas sold at Rs 3,350; same figure from Chichawatni at the same rate and same figure from Bahawal pur at the equal figure, they 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 3,350.00 100 3,450.00
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Equivalent
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40 Kgs 3,590.00 100 3,690.00
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