KCA spot rate up by Rs 50 at Rs 2725

Some mills went for fresh buying, though prices were on the upward march following the apprehensions about the size of crop, dealers said. The Karachi Cotton Association (KCA) official spot rate maintained rising trend, picking up Rs 50 to Rs 2725 Thus the prices gained Rs 75 during the week, they said.
In the ready business, the trading was seen between Rs 2800-3000, they said. Market sources said that uncertainty prevailed in the cotton market as there is no confirmed news about the extent of damage to cotton crop by the rains or pest attack. It is very difficult to say about the future direction of trade because picture is not clear about the size of damaged crop, they said.
It is definite that the prices may go up further in the coming days, Upward trend persisted in the NY cotton market as all the trading centres opened after one-day Independence Day holiday, dealers said.
The New York Board of Trade's key December cotton contract settled with 0.74 cent gains at 64.63 cents a lb. In business, it raced up to a contract top at 64.90 cents, last seen on April 2004 on a continuation chart basis. Most of the rest also set new life-of-contract highs, ending from 0.10 to 0.87 cent higher.
On Intercontinental Exchange's NYBOT electronic cotton market, December cotton also set a new contract high at 64.90 cents a lb. By 5:23 pm, the contact remained 0.70 cent firmer at 64.59 cents a lb.
The following deals were reported: 100 bales of cotton from Sahiwal sold at Rs 2950, 800 bales from same station at Rs 3000, 200 bales from Burewala at Rs 3000, 600 from Sanghar at Rs 2800 (1st week of August delivery) and 937 bales of cotton from Deragazi Khan at Rs 2825.

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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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37.32 Kgs     2,650.00         50                  2,700.00

Equivalent-------------------------------------------------

40 Kgs        2,840.00         50                  2,890.00

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