Prices moved up on the cotton market on Monday as mills showed interest in fresh buying in anticipation of further price rise in the near future, dealers 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 2,600 bales of cotton changed hands between Rs 7700-9000, they added. According to the market sources, fine quality was in demand as mills have to cover the immediate needs. Floods and drought news in the cotton producing countries caused fresh flare-up in the rates, experts said.
On the other hand, ginners have also increased the asking prices to gain more profit, they added. The following deals were reported: 200 bales of cotton from Mehrab Pur sold at Rs 8300, 400 bales from Ghotki at Rs 8400, 197 bales from Bahawal Pur at Rs 7700, 200 bales from Bahawal Pur at Rs 7900, 400 bales from Chichawatni at Rs 8000, 200 bales from Shujabad at Rs 8400, 1000 bales from Rahim Yar Khan at Rs 9000 (two-month credit).
===========================================================================
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 28.05.2011
===========================================================================
37.324 Kgs 8,500 120 8,620 8,620 NIL
---------------------------------------------------------------------------
Equivalent
---------------------------------------------------------------------------
40 Kgs 9,109 120 9,229 9,229 NIL
===========================================================================