Cotton prices firm due to delay in phutti arrivals, more rains likely

The rates were firm on the cotton market on Monday due to stoppage in phutti arrivals and following the more rains expectations in the country, dealers said. The Karachi Cotton Association (KCA) official spot rate was left unchanged at Rs 6200, they said.
In the ready business nearly 6,700 bales of cotton changed hands between Rs 5750-6300, they said. Phutti prices were almost unchanged as rates in Sindh were at Rs 2500-2550 and in Punjab Rs 2700-2800, they added. According to market sources, mills were busy in covering the short-term needs amid expectations of more rains in the country. They said that it is true that phutti arrival will improve as the rains stop but on the other hand it is also likely that if rains continue for a long time, it would damage the standing crop.
In addition, the fears are rising due to floods in cotton belt because the news are reaching the market that floods can hurt the crop and other viruses can play havoc but it is before time to say something about the developing situation, they said.
The following deals were reported: 2000 bales of cotton from Sultanabad sold at Rs 5750-5900, 200 bales from Mir Pur Khas sold at Rs 5800, 600 bales from Tando Adam at Rs 5800-5950, 1200 bales from Shahdad Pur at Rs 5850-5980, 400 bales from Sanghar at Rs 5850-5900, 1000 bales from Khanewal at Rs 6225-6300, 600 bales from Burewala at Rs 6200-6300, 800 bales from Chichawatni at Rs 6200-6250, 400 bales from Vehari at Rs 6100-6250, 200 bales from Kabirwala at Rs 6200 and 200 bales from Mian Channu at Rs 6150.

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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     6,200.00      100                   6,320.00

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Equivalent

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40 Kgs         6,645.00      100                   6,765.00

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