Shutters were down at the commercial centres on Tuesday in the city, including cotton market. The Karachi Cotton Association (KCA) did not issue official spot rate due to tense situation in the city after killing of 35 people in the city.
Violence erupted in the city after the murder of a member of the provincial assembly of Sindh from Muttahida Qaumi Movement (MQM) Raza Haider. Phutti prices were higher as rates in Sindh were at Rs 2600-2650 and in Punjab, rates were at Rs 2800-2900. No business activity was seen on the cotton market due to tense situation in the city, Naseem Usman said. He said that in Sindh, many ginning factories had closed down due to fears of floods. He said that in Punjab, during trading, cotton prices hit a high at Rs 6600. It looked that floods may hurt crop in floods areas and as a result of this prices were likely to go up further in the coming days, he added.
On Monday, NY cotton futures ended at a five-week peak, as a combination of strong technical momentum and supportive outside markets buoyed values, but stiff resistance near the 80-cent level could spark a near-term correction, analysts said.
The December contract rose 0.58 cent to settle at 79.34 cents per lb, after moving from 78.16 to 79.80 cents. It was the highest close for the second position contract since June 29, according to Thomson Reuters data. The spot October cotton contract gained 1.49 cents, or 1.8 percent, to end at 83.85 cents. The premium October cotton holds over the key December contract now stands at 4.51 cents, up from the previous session's premium of 3.60 cents. Volume traded in the December contract stood at 15,402 lots at 2:51 pm EDT (1851 GMT).
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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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