Firmness prevailed on the cotton market on Thursday as ginners did not show any flexibility in their attitude towards prices, dealers said. The Karachi Cotton Association (KCA) official spot rate was inert at Rs 5,625, dealers said. In the ready business, over 2,000 bales of cotton changed hands between Rs 5500-5800. Phutti prices in both the Punjab and Sindh were at Rs 2100-2200, they added.
According to the market sources, the ginners were happy under the circumstances as the prices were higher due to falling unsold stock. Now the mills have to buy cotton at the higher rates to meet their requirements. Many are guessing that the prices may increase further in the coming days, they added. On Wednesday the NY cotton futures crumbled from investor liquidation to close lower as the market stumbled after failing to sustain an advance beyond the upper end of its trading band, brokers said.
The key May cotton contract dove 1.31 cents to end at 80.98 cents a lb, trading from 80.56 to 82.35 cents. Volume in the May contract hit 9,743 lots at 2:50 pm EDT (1850 GMT). July cotton lost 1.17 cents to finish at 82.19 cents and new-crop December shed 0.30 cent to close at 75.69 cents.
The following deals were reported: 300 bales of cotton from Qabula sold at Rs 5550, same figure from Mailsi at Rs 5650, same figure from Ahmedpur East at Rs 5800, 200 bales from same station at the same rate, 400 bales from Rahim yar Khan at Rs 5750, same figure from Karoor Pakka at Rs 5700 and 300 bales from Chichawatni at Rs 5500, 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     5,625.00      100                   5,725.00
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Equivalent
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40 Kgs         6,028.00      100                   6,128.00
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