Firmness prevailed on the local cotton market on Saturday as the ginners were not ready to sell below their psychological level as rains in the Punjab continued and may cause stoppage in phutti arrival, dealers said. The Karachi Cotton Association (KCA) official spot rate maintained overnight rate at Rs 5,850, they said.
In the ready business, more than 4,600 bales of cotton changed hands between Rs 5800-6100, they said. According to the market sources, cotton circle is waiting for the decision over the export of cotton yarn, instead of taking interest in daily business.
Uncertainties persisted due to the said reason as mills were busy in finalising the deals but most of them were hoping for decline in the rates after an increase in the phutti arrival, some experts said. They said that it is most likely that the time may be extended on the exports of cotton yarn, the downpour continues in Punjab but if it continued for a long time, it may cause slight damage to the crop, they added.
On Friday the NY cotton futures finished at a two-week high on follow-through buying as scant deliverable cotton supplies boosted nearby contracts and the advance may spill over into next week, brokers said. The December cotton contract increased 0.63 cent to end at 75.34 cents per lb, moving from 74.51 to 75.54 cents. It was the loftiest close for the second position contract since July 8, according to Thomson Reuters data.
On the week, the contract was up 1.86 percent from last Friday's close of 73.96 cents. The spot October cotton contract gained 0.75 cent to finish at 80.32 cents. October enjoys a 4.98 cents premium over key December, up from the previous session's premium of 4.86 cents. Volume traded in the December contract stood at 12,028 lots at 2:30 pm EDT (1830 GMT).
The following deals were reported: 400 bales of cotton from Sanghar sold at Rs 5900, 200 bales from Shahdad Pur at Rs 5900, 200 bales from Shahdad Pur at Rs 5800 (delivery for 1st August), 800 bales from Burewala at Rs 6050-6100 200 bales from Vehari at Rs 6050, 400 bales from Multan at Rs 6050, 200 bales from Vehari at Rs 6100, 200 bales from Burewala at Rs 6100, 200 bales from Mian Channo at Rs 6100, 200 bales from Mian Channo at Rs 6100, 200 bales from Khanewal at Rs 6100, 400 bales from Chichawatni at Rs 6075-6100 600 bales from Arifwala at Rs 6050-6100, 200 bales from Sahiwal at Rs 6050 and 200 bales from Hasil Pur at Rs 6000.
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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 5,850.00 100 5,950.00
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Equivalent
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40 Kgs 6,269.00 100 6,369.00
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