Spot rate was further higher on the cotton market on Thursday despite the fact that there was no rush by the mills, experts said. The Karachi Cotton Association (KCA) raised official spot rate by another Rs 50 second in succession, at Rs 3700, dealers said.
According to the market sources, the ginners were demanding higher prices for the fine type, otherwise, there is no panic on the part of spinners, but soaring prices are really a surprising factor. They also said that the mills were trying to lower the prices but the ginners were not ready to bring the rates down due to rising trend in the oil and dollar rates.
On Wednesday, cotton futures closed mixed as trade and suspected consumer buying wiped out most of the early losses from investor sales, with brokers saying the market may see some consolidation in the days ahead. The benchmark July cotton contract rose 0.24 cent to end at 66.49 cents per lb, trading from 65.11 to 67.20 cents.
New-crop December shed 0.07 cent to finish at 74.94 cents, ranging from 73.79 to 75.50 cents. Volume in the July contract stood at 13,731 lots at 3:03 pm EDT (1903 GMT), while December volume was 8,790 lots. A solo deal of 7100 bales of cotton from upper Sindh was recorded at Rs 3800-3825, 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     3,700.00        50                   3,750.00
Equivalent-------------------------------------------------
40 Kgs        3,965.00        50                   4,015.00
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