Firmness prevailed at the cotton market on Thursday as spot rate maintained the overnight level ahead of federal budget (2007-08), dealers said. The Karachi Cotton Association (KCA) official spot rate was unchanged at Rs 2600, they added.
Market sources said that dullness prevailed in the market as most of the buyers and sellers kept on the sidelines, waiting for incentives for textile sector in the budget, likely on June 9, they said. In the meantime, the ginners were trying to sell from the unsold stock, which is nearly 0.2 million bales of cotton, they said.
Expectations for better production in the coming season propelled them to dispose of the stock as early as possible, they said. Higher trend in the international market gave a boost to the prices in the local markets as mills intended to purchase the best quality at the lower rates, they said.
Easier trend was seen in the NY cotton futures as the New York Board of Trade's open-outcry July cotton contract closed down 0.20 cent at 51.55 cents per lb. after dealing between 51.25 and 52.10 cents. New-crop December slipped 0.08 to 57.30 cents and, two contracts aside, the rest lost 0.05 to 0.35 cent. Intercontinental Exchange's NYBOT electronic cotton market showed the July contract down 0.14 cent at 51.61 cents at 2:32 pm.

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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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