Modest trading was seen on the cotton market on Friday a few mills did some buying to cover their immediate needs, dealers said. The Karachi Cotton Association (KCA) official spot rate was unchanged at Rs 2600, without upcountry expenses. In the ready business, nearly 7000 bales of cotton changed hands reportedly at Rs 2700, dealers said.
Brokers said that wait-and-see conditions prevailed in the market as main buyers are still hoping that prices will come down but it looks very difficult as the rates were up in the overseas market due to good demand. Mills were also expecting that prices may fluctuate slightly after the release of the Pakistan Cotton Ginners Association (PCGA) report, they said.
According to the Reuters: the New York Board of Trade's May cotton contract rose 0.28 cent to close at 54.19 cents per lb, trading from 53.65 to 54.20 cents. July rose 0.22 to 55.09 cents. The rest increased from 0.20 to 0.55 cent. The Intercontinental Exchange's NYBOT electronic market for cotton showed the May contract up 0.25 cent to 54.16 cents at 2:33 pm EDT (1833 GMT), moving from 53.70 to 54.20 cents.
The following the deals were reported: 2000 bales of cotton from Rahim Yar Khan sold at Rs 2700, 3600 bales from Khanpur at the same rate and 1050 bales from upper Sindh at the same level, 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"
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 2600.00 50 2650.00
Equivalent-------------------------------------------------
40 Kgs 2786.00 50 2836.00
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