Nominal business was seen on the cotton market on Wednesday as ginners raised the asking prices on falling unsold stock, dealers said. The Karachi Cotton Association (KCA) official spot rate was unchanged at Rs 5,700, dealers said. In the ready business a deal of 500 bales of cotton was struck at Vehari for Rs 5725. Phutti prices in both the Punjab and Sindh were at Rs 2100-2200, they added.
According to the market sources tight supplies did not allow the mills to make any purchase as the ginners raised the asking prices due to meagre stocks. It is likely that the rates may go up in the coming days, they said. Indian cotton is costlier these days and it is difficult to import at the present rates, they added.
On Tuesday the NY cotton futures finished higher on investor short-covering tied to possible export business and the momentum from the advance could well boost fibre contracts into Wednesday, brokers said. The key May cotton contract jumped 1.90 cents to end at 80.03 cents per lb, trading from 78.14 to 80.68 cents. Volume in the May contract hit 18,130 lots at 3 pm EDT (1900 GMT). Most-active July cotton added 1.98 cents to finish at 81.61 cents and new-crop December gained 0.60 cent to close at 75.94 cents.
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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 5,700.00 100 5,800.00
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Equivalent
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40 Kgs 6,109.00 100 6,209.00
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