Firm trend was seen in the cotton market on Tuesday as the spot rate picked up Rs 50 following the mills active buying to cover their forward needs, dealers said. The Karachi Cotton Association (KCA) official spot rate was higher by Rs 50 to Rs 2775, they added.
In the ready business, the deals finalised between Rs 2800-3030, they said. According to the market, spinners were taking interest in the fresh buying due to continued rise in the prices. The ginning factory in Sindh has started operation.
The New York cotton market moved sharply higher as the New York Board of Trade's key December cotton contract shot up 2.0 cents to close at 66.63 cents per lb, after charging up to a contract peak at 67.30 a lb, a level last seen in March 2004. The low rose to 65.40 cents. The rest had surged from 1.00 to 2.25 cents by the settlement.
The Intercontinental Exchange NYBOT electronic cotton market's December contract was quoted 2.02 cents higher at 66.65 cents a lb by 4:30 pm EDT (2030 GMT). Even at the start, cotton raced up. December opened more than 80 cent higher, in line with electronic trading.
The following deals were reported: 400 bales of cotton from Tando Adam sold at Rs 2800 (July end), 200 bales from Burewala at Rs 3000, same figure from Sahiwal at Rs 2950, 200 bales from Mirpurkhas at Rs 2900 and 600 bales from Mailsi at Rs 3030, 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 2775.00 50 2825.00
Equivalent-------------------------------------------------
40 Kgs 2974.00 50 3024.00
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