Firmness prevailed on the cotton market on Thursday as mills preferred to continue purchasing inferior quality cotton as prices of the fine types were not matching with their psychological levels. Transaction was higher compared with Wednesday's, dealers said.
The Karachi Cotton Association (KCA) official spot rate held overnight level at Rs 3200, they said. Phutti prices in both Sindh and Punjab were same at Rs 1300-1500, they said. Deals finalised between Rs 3150-3400, they said.
Market sources said that due to shortage of production, prices were on the upside and ginners were keen to increase the rates under the circumstances. But, on the other hand, the spinners were not looking to change their business strategy and will wait for the time, they added.
The New York cotton futures gave up overnight gains as the ICE Futures' open-outcry May cotton contract closed 1.55 cents lower at 77.93 cents per lb, with a trading range from 77.30 to 79 cents. The new-crop December cotton contract finished down 1.53 at 83.50 cents. The rest slipped 0.90 to 2.20 cents.
Agricultural futures contracts trading on ICE will become fully electronic on March 3. The last day of floor trade is Friday. The May electronic cotton contract was 1.73 cents weaker at 77.75 cents at 3:04 pm EST (2004 GMT), in a trading band from 77.23 to 79.70 cents.
The following deals were finalised: 900 bales from Kabola sold at Rs 3400, 500 bales from Karoorpakka at Rs 3300, 400 bales from Kumb, 1000 bales from Sethraja at the same rate, 2400 bales from upper Sindh at Rs 3240-3400, 5000 bales from Sadiqabad at Rs 3200-3225, 1000 dales from Liquatpur at Rs 3200, 5000 from Rahimyar Khan at Rs 3200-3300 and 1000 bales from Hyderabad at Rs 3150-3175, 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      3200.00        50                    3250.00
Equivalent-------------------------------------------------
40 Kgs         3429.00        50                    3479.00
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