Official spot rate was higher on the cotton market on Monday in the process of modest trading, dealers said. The official spot rate was up by Rs 50 Rs 6,450, they said. In the ready business, over 2,000 bales of cotton sold between Rs 6350-6800 as ginners raised asking prices of fine type, dealers said.
Ginners had not enough stock of unsold cotton so they decided to compensate their earlier losses, Naseem Usman said. It was expected that prices might be range-bound due to cautious buying from mills and spinners, other analysts said. Early rains in Sindh may not cause, sharp rise in the prices as mills will try to buy good quality of cotton to meet world competitions, they said.
According to the Reuters, cotton prices in India may remain firm this week, supported by concerns over lower sowing as farmers may shift to other lucrative crops, while a drop in spot supplies and a pick-up in yarn demand would also help prices. Sowing of cotton has begun in the country and would pick up with the spread of monsoon rains, traders said. The following deals reported: 800 bales of cotton from Tando Adam at Rs 6350, 800 bales from Ali Pur at Rs 6400-6800, 600 bales from Shahir Sultan at Rs 6800, they said.
===========================================================================
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 01.06.2013
===========================================================================
37.324 Kgs 6,450 155 6,605 6,555 +50
---------------------------------------------------------------------------
Equivalent
---------------------------------------------------------------------------
40 Kgs 6,912 155 7,067 7,014 +53
===========================================================================