Subdued business was witnessed on the cotton market on Friday as spot rate fell modestly, dealers said. The Karachi Cotton Association (KCA) official spot rate was down by Rs 25 to Rs 2650, without upcountry expenses. The deals finalised between Rs 2300-2700, they said.
According to the market sources mills were taking interest in buying of both type of cotton to meet the local demand and export requirements. Rebound in the NY cotton futures was an encouraging factor for the ginners, who were worried over the falling trend in the world prices following the global scenario. Better production of cotton the world over pushed the rates down including NY cotton, which came under pressure last week but now it has started recovering with moderate pace, they said.
One thing was important to note that the mills were showing increased interest in the fresh purchasing of cotton on apprehensions of rise in the prices, analysts said.
Higher trend persisted in the NY cotton futures as the New York Board of Trade's open-outcry July cotton contract rose 0.40 cent to settle at 49.59 cents per lb., trading from 49.10 to 49.90 cents. It was an inside day since the range was within Wednesday's 48.40 to 50.20 cents band. The new-crop December cotton contract gained 0.36 cent to 53.86 cents. The rest added 0.08 to 0.37 cent.
Intercontinental Exchange's NYBOT electronic cotton market showed the July contract up 0.46 cent to 49.65 cents at 2:30 pm. The following deals were reported as some 500 bales of cotton from Haroonabad sold at Rs 2300-2350, same figure from Vehari at Rs 2700 and 800 bales from Lodhran at Rs 2640.

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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      2650.00        50                    2700.00
Equivalent-------------------------------------------------
40 Kgs         2840.00        50                    2890.00
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