Firm trend prevails on cotton market

Firmer trend was witnessed on the cotton market on Friday as main participants were on the sidelined due to absence of guiding factors, dealers said The Karachi Cotton Association (KCA) official spot rate was unchanged at Rs 2600, they added.
According to the market sources, ginners were upset under the circumstances and they were not expecting the rates of cotton will come down, instead they were hoping for an increase in prices due to short crop.
The spinners, however, are buying good quality cotton from both local and foreign market and paying high rates to make their exports competitive in the international markets, they said.
The NY cotton futures settled at the three-month high as the New York Board of Trade's open-outcry July cotton contract climbed 1.56 cents to end at 54 cents per lb, moving from 53.25 to 54.50 cents. It was the highest close for cotton since mid-March. New-crop December contract rose 1.02 to 59.01 cents and the rest advanced from 0.80 to 1.00 cent. Intercontinental Exchange's NYBOT electronic cotton market showed the July contract up 1.66 cents at 54.10 cents at 2:31 pm EDT (1831 GMT).

===========================================================

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 Ex-Karachi

for            Price                        Sales Tax @ 15%

===========================================================

37.32 Kgs      2600.00        50                    2650.00

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

40 Kgs         2786.00        50                    2836.00

===========================================================