Firm trend seen on cotton market

Firmness prevailed in the cotton market on Tuesday as ginners insisting to make any deal at the asking prices, dealers said. The Karachi Cotton Association (KCA) official spot rate was unchanged at Rs 2650, they added.
In the ready business, no new business was seen as tug-of-war continued between mills and ginners, dealers said. Market sources said that earlier ginners were happy after the countrywide rains but now the rains bothering as they fear the rains may damage the standing crop in the cotton belt. They said that the phutti has started arriving in the ginning factories and according to the news reaching here the Sky ginning factory had begun operation.
The rains could prove good if the land in the cotton belt absores the water, but if the rains continue for several days, it could damage the crop, some brokers said.
First lot of 100 bales of cotton was ginned at the Sahiwal ginning factory and ginners were not ready to lower the asking prices, they said. The New York cotton futures moved both ways as the New York Board of Trade's key December cotton contract added 0.10 cent to close at 63.43 cents per lb, dealing from 63.20 to 63.93 cents. The rest ranged from 0.50 cent lower to 0.65 cent firmer.
Intercontinental Exchange's NYBOT electronic cotton market showed the December contract up 0.27 cent at 63.60 cents at 2:35 pm EDT (1835 GMT). Not a single deal was reported on Tuesday, they said.

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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      2650.00        50                    2700.00

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

40 Kgs         2840.00        50                    2890.00

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