Spot rate slashed to Rs 6,300; prices fall on cotton market as phutti arrivals pick up

Seedcotton prices fell on the cotton market on Monday as picking operation accelerated after fresh rains in cotton growing areas, dealers said. The Karachi Cotton Association (KCA) official spot rate was curtailed by Rs 200 to Rs 6,300, they said. In the ready business nearly 8,000 bales of cotton changed hands between Rs 6300-6550, they said.
The seedcotton in Sindh was down by Rs 300 to Rs 2450-2550 and rates in Punjab lost steeply by Rs 500-150 to Rs 2200-2800, they said. Market sources said that ginners were selling cotton actively to get the better return as phutti arrivals picked up as rains stopped in the cotton growing areas. Furthermore, there was no report about fresh rains, this factor pushed prices lower and it is expected that rates may come down in the coming days, they said. It is likely that the government may make final decision over the issue of 3.5 percent withholding tax over the purchasing of phutti from the third party, experts said.
The following deals were reported: 1200 bales of cotton from Shahdad Pur sold at Rs 5800-6200, 1000 bales from Tando Adam at Rs 6000-6200, 200 bales from Mir Pur Khas at Rs 6050, 200 bales from Golarchi at Rs 6100, 200 bales from Shah Pur Chakar at Rs 6100, 400 bales from Mian Chunnun at Rs 6000 6200, 200 bales from Sultanabad at Rs 6200, 800 bales from Sanghar at Rs 6000-6200, 1000 bales from Hasil Pur at Rs 6375-6550, 400 bales from Arif Pur at Rs 6000, 400 bales from Sahiwal at Rs 6250, 200 bales from Samandari at Rs 6400, 200 bales from Shorr Kot at Rs 6450, 400 bales from Mian Chano at Rs 6400, 200 bales from Pir Mahal at Rs 6450 and 200 bales from Khanewal at Rs 6400.

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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"

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                                    MICRONAIRE VALUE BETWEEN 3.8 TO 4.9 NCL

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Rate              Ex-Gin   Upcountry   Spot Rate    Spot Rate    Difference

                    For      Price     Ex-Karachi  Ex. KHI. As   Ex-Karachi

                                                  on 20.08.2011

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37.324 Kgs       6,300       120       6,430        6,630              -200

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Equivalent

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40 Kgs           6,752       120       6,882        7,096              -214

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