Tug of war between buyers and sellers started over the prices in the cotton market on Tuesday amid cautious trading due to heavy rains, dealers said. The official spot rates held its previous level at Rs 2075, without upcountry expenses, dealers said. Seed-cotton prices almost maintained their overnight Rs 900-1025 in Sindh and in Punjab phutti prices at Rs 900-1050 levels. In Punjab cotton prices were at Rs 1900-2160 and in Sindh at Rs 1900-2150.
According to the market sources, despite the higher cotton production reports, it looks that ginners were in no mood to oblige buyers and were demanding Rs2100-2200 for better quality.
Relevant sources said that it seems that rising trend may continue in the prices as both ginners and spinners were not prepared to change their attitude.
They observed that the spinners wanted to buy new lots to meet the daily requirements but ginners were not ready to sell their stock at the prevailing rates in the absences of the Trading Corporation of Pakistan (TCP).
The TCP played an active role in stabilising the cotton prices to support growers and spinners at a time when prices were on the lower side due to better cotton production reports, analysts said.
The TCP has started receiving delivery from ginners into its gowdowns all over the country, they said.
Dealers said that cotton futures finished softer on sales by small speculators as players wait for news which could inspire the next move.
The New York Board of Trade's March cotton contract eased 0.53 cent to end at 46.44 cents a lb, moving from 46.05 to 46.85 cents. May contract fell 0.35 cent to 47.42 cents. Back months declined 0.10 to 0.25 cent.
Following deals were reported; 400 bales of cotton from Sanghar at Rs 2000, 1000 bales from Khanpur at Rs 2150 and some 400 bales from Bahawalpur at Rs 2050.

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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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37.32 Kgs      2075.00        50                    2125.00
Equivalent-------------------------------------------------
40 Kgs         2224.00        50                    2274.00
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