Firmness prevailed on the cotton market on Monday in process of thin business as a result of ginners' not being interested in bringing down the rates, brokers said. The Karachi Cotton Association (KCA) official spot rate was unchanged at Rs 8,500, they said.
In Sindh and Punjab phutty price of low type was at Rs 2500 and that of superior type at Rs 3000, they said. In ready business, over 1400 bales of cotton changed hands between Rs 8,300-8,600, they added. Market sources said that mills were ready to buy cotton but the ginners preferred to be sidelined in anticipation of rise in the prices.
The mills extended buying interest on expectations of pick up in exports as the dollar hit the record level at 87.50, which is rising expectations for increase in textile exports and it is most likely that the country may achieve the target, they said.
Some brokers said that sowing in major cotton growing areas is good and progressing as there is no shortage of irrigation water in the cotton belt, timely rains in the cotton producing countries will help in easing the rates of cotton otherwise, situation could be reverse. The following deals were reported: 800 bales of cotton from Kabir Wala sold at Rs 8500-8600, 200 bales of cotton from Bahawal Pur at Rs 8300 and 400 bales from Rahim Yar Khan at Rs 8550.
===========================================================================
The KCA Official Spot Rate for Local Dealings in Pak Rupees
---------------------------------------------------------------------------
FOR BASE GRADE 3 STAPLE LENGTH 1-1/32"
---------------------------------------------------------------------------
MICRONAIRE VALUE BETWEEN 3.8 TO 4.9 NCL
===========================================================================
Rate Ex-Gin Upcountry Spot Rate Spot Rate Difference
For Price Ex-Karachi Ex. KHI. As Ex-Karachi
on 21.05.2011
===========================================================================
37.324 Kgs 8,500 120 8,620 8,620 NIL
---------------------------------------------------------------------------
Equivalent
---------------------------------------------------------------------------
40 Kgs 9,109 120 9,229 9,229 NIL
===========================================================================