First new cotton crop deal finalised for August delivery

First deal of 2004-05 crop was finalised on the cotton market on Saturday along with some deals of current crop, relevant sources said. They said spot sale shed Rs 25 to Rs 3075 without ST and upcountry expenses.
The continued decline in world cotton rates affected ginners' stance in Pakistan. The spot rate thus was pulled down by Rs 25 to Rs 3075.
In ready, around 2000 bales of cotton changed hands, including 200 bales of new crop for delivery in August.
Incidentally, for the first time this week, New York cotton futures snatched gains. July gained was up 0.76 cent to 57.80 and October gained 0.50 cent to 57.75 cents a pound.
Meanwhile, hedge trading, likely from July in yarn, was being questioned. Sources were apprehensive why cotton was ignored. They also pointed out that when till recently the system was supposed to be un-Islamic why hedge trading has been allowed. They said the system is in practice in countries where cotton production in surplus.
Following deals were reported in current crop: 1000 bales of K-68 done at Rs 3125; 800 bales of K-68 Khanpur Mahar (exporter sold to mills) at Rs 2900; and 200 bales of Sultanabad for delivery by 15/25 August 2004 at Rs 2800.

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

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

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

                                        Ex-Gin Prices          Up-country             Spot Rate Ex-Karachi

Rate                   Ex-Gin             Including            Expenses                          Including

for                    Price            Sale Tax @ 15%                                     Sales Tax @ 15%

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

37.32 Kgs             3075.00             3536.25                  50                              3586.25

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

40 Kgs                3295.00             3789.25                  50                              3839.25

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