Prices moved up with improved activity on the cotton market on Monday on expectations of arrival of remaining 5000 bales from current crop by the end of the session, dealers said. The Karachi Cotton Association (KCA) official spot rate was raised by Rs 75 to Rs 5,550, dealers said.
In the ready business over 4000 bales of cotton changed hands from different stations at Rs 5600-5700, they said. The Pakistan Cotton Ginners Association (PCGA) issued its fortnightly report till March 31, total arrivals amounted to some 12.7 million bales of cotton.
Commenting on the fresh rise in the rates, some analysts said that mills need cotton to meet the local requirements and the unsold stock is above 0.2 million bales only, which is not enough to meet the mills' requirement. On the other hand import of cotton from India is costlier as its currency is gaining strength with the passage of time. Furthermore, long procedure is barring importers from buying cotton from US and China, they said.
The following deals were reported: 2000 bales of cotton from Rahim Yar Khan sold at Rs 5600, 1000 bales from same station at Rs 5700, 400 bales from same station at Rs 5600, 820 bales from Vehari at Rs 5650 and 400 bales from Hyderabad at Rs 5600, 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 5,550.00 100 5,650.00
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Equivalent
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40 Kgs 5,948.00 100 6,048.00
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