Official spot rate rose sharply amid tight supply position on the cotton market on Wednesday, dealers said. The official spot rate gained Rs 100 to Rs 6,900, they said. Rates of seed cotton in Sindh were inert at Rs 2400-3100 and in the Punjab prices were inert at 2300-3340, they said. In the ready business, over 8,000 bales of cotton changed hands between Rs 6,400 and Rs 7,500, they said.
Market sources said that ginners were anticipating that if present condition lasted in the near future, that factor would make them able to get further profit as they had very little stock of fine type. Today, Ministry of Finance had waved sales tax on the raw cotton that gave a boost to exports of said items, other experts said. Cotton analyst, Naseem Usman, commenting on the next direction in the market said that prices might fluctuate cautiously after the removal of sales tax on the raw cotton. There was no relaxation in other textile products, they added.
According to Reuters, the NY cotton inched up on Tuesday, stabilising after falling during the previous session when the Cypriot bailout plan sparked concern over euro zone stability and incited a cross-commodities sell-off. The most-active May cotton contract on ICE Futures US gained 0.3 cent, or 0.3 percent, to settle at 91.13 cents per pound. Trading volumes were light, at about 13,000 lots, nearly 45 percent below the 30-day average, preliminary Thomson Reuters' data showed.
The following deals were reported: 400 bales of cotton from Tando Jam Mohammad at Rs 6500, 200 bales from Sahiwal at Rs 6700, same figure from Mian Wali at the same rate, 2200 bales from Burewala at Rs 6400-7000, 400 bales from Haroonabad at Rs 7000, 1000 bales from Khanewal at the same rate, 1435 bales from head Bakani at Rs 7100, 1400 bales from Bahawal Pur at equal level, 400 Rahim Yar Khan at Rs 7200, same figure from Fazil Pur (conditional) at Rs 7400 and 1500 bales from Lodhran (conditional) at Rs 7500, 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"
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MICRONAIRE VALUE BETWEEN 3.8 TO 4.9 NCL
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Rate Ex-Gin Upcountry Spot Rate Spot Rate Difference
For Price Ex-Karachi Ex. KHI. As Ex-Karachi
on 19.03.2013
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37.324 Kgs 6,900 155 7,055 6,955 +100
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Equivalent
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40 Kgs 7,395 155 7,550 7,443 +107
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