Lacklustre condition prevailed on the cotton market on Tuesday as main players kept on the sidelines to observe the emerging scenario after the PCGA report, dealers said. The official spot rates maintained the overnight levels at Rs 2225, without upcountry expenses. The cotton prices were within the band of Rs 2050-2200. Market sources said that the general trend was soft as spinners were seeking new deals at reduced rates on the expectations of the further fall in the prices but the ginners, on the other hand, were holding the unsold stock on anticipation that prices may not come down sharply.
In the meantime, some ginners were offering lower rates, below from the market prices to dispose of the stock as the Trading Corporation of Pakistan (TCP) has floated the tender for cotton sale, they observed.
Explaining the positive changes on the economic front, Naseem Usman said that the final production figure rose to 14.347 million bales from the previous 14.330 million bales and showing significant improvement.
It's an encouraging factor ahead of the Budget 2005-06. Additionally, the country might achieve better cotton production in the coming years, he hoped.
The NY cotton futures were firm on Monday on increased demand, foreign brokers said. The New York Board of Trade's key May contract surged 0.72 cent to conclude at 52.78 cents a lb, ranging from 51.90 to 54 cents. July rose 0.70 to 53.84 cents. The rest gained 0.20 to 0.45 cent.
Since, the week started, the cotton market observed no deal in the absence of the mills and spinners demand, dealers 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"
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 2225.00 50 2275.00
Equivalent-------------------------------------------------
40 Kgs 2385.00 50 2435.00
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