Shortage of unsold stock and rising cotton yarn demand pushed the prices higher on the cotton market on Wednesday amid improved business, dealers said. The Karachi Cotton Association (KCA) official spot rate was raised by Rs 25 to Rs 5475, dealers said. In the ready business over 4000 bales of cotton from different stations changed hands between Rs 5350-5500,they said.
According to the market sources cotton yarn prices inched up due to strong demand and it seems that the rates may go further higher in the days to come. In fact, shortage of unsold stock is main reason behind the rise in the prices and no impact of falling trend in the international market is seen on the local rates, they added.
On Tuesday the NY cotton futures closed lower, pressured by a rise in the dollar, but prices held above the recent range low as many players were on hold for the long-awaited USDA report on planting intentions, traders said. Benchmark May cotton contract finished 0.89 cent lower at 79.54 cents a lb.
It traded down to 79.37, its lowest since Friday, from a 81.12 cent high. Volume in the May contract was a paltry 8,461 lots, with total cotton futures volume estimated at less than 11,000 lots by 3:30 pm EDT (1930 GMT). July cotton closed down 0.82 cent at 80.82 cents a lb. New-crop December lost 0.47 cent to end at 74.57.
The following deals were finalised: 500 bales of cotton from Buchari sold at Rs 5500, 200 bales from Chichawatni at Rs 5350, 2308 bales from Khan Pur at Rs 5500, 400 bales from Haroonabad at Rs 5500, 590 bales from Haroonabad at 5500 and 350 bales from same station at the same rate, 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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37.324 Kgs     5,475.00      100                   5,575.00
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Equivalent
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40 Kgs         5,868.00      100                   5,968.00
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