Rates fall slightly on steady phutti arrivals

Prices came down on the cotton market on Tuesday as a result of steady phutti arrival after monsoon rains, dealers said. The official spot rate was unchanged at Rs 3450, they said. Nearly 13000 bales changed hands between Rs 3450-3575, they said. Phutti prices dropped by Rs 25 in Sindh at Rs 1700-1725 and in Punjab, the rates followed same path, dropping same amount at Rs 1725-1750, they added.
According to the market sources as a result of steady phutti arrivals, prices fell and it is most likely that rates move both ways in the near future. Falling trend in the prices attracted the mills, making forward deals to keep themselves from the future losses, they said. Short crop news in the US market may help in stabilising in the near future, they added.
They said that the recent monsoon rains were favourable for the standing crop as production is showing gradual rise for the current season. In the meantime, the ginners are willing to sell stock but not below their psychological level, they said. If the phutti arrivals maintained the present pace, the ginners may face tough time and they may not be able to make big profit, they observed.
The following deals were reported: 1200 bales of cotton from Hyderabad sold at Rs 3450-3475, 1600 bales from Mirpurkhas at Rs 3450-3475, 4000 bales from Shahdadpur at Rs 3475-3500, 3500 bales from Tando Adam at Rs 3475-3500, 2000 bales from Sanghar at Rs 3450-3475, 1000 bales from Nawabshah at Rs 3475, 1000 bales from Khipro at Rs 3450, 400 bales from Faqeerwali at Rs 3575, 400 bales from Kabirwala at Rs 3575, 200 bales from Haroonabad at Rs 3550, 400 bales from Burewala at Rs 3550, 200 bales from Chistian at Rs 3525 and 400 bales from Pak Pattan at Rs 3525, 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     3,450.00      100                   3,550.00

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Equivalent

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40 Kgs         3,697.00      100                   3,797.00

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