Steady trend on cotton market

Steady trading was seen on cotton market on Monday as needy buyers indulged in buying to meet urgent requirements, dealers said. The official spot rate was unchanged at its weekend level at Rs 1825 without upcountry expenses. Prices in ready in Sindh ranged at Rs 1600 to Rs 1900, and in Punjab at Rs 1650 to Rs 1900. Seed-cotton in Sindh was available at Rs 700-825 and in Punjab at Rs 650-860 per 40 kg.
Ginners were in no hurry to sell their stocks in the market due to presence of Trading Corporation of Pakistan (TCP) and partly because of expectations of some recovery in prices.
Market sources said that consumption by domestic mills was expected at 14 million bales, while the latest crop forecast stands at 12.5 to 13 million bales, showing shortage against demand.
The market digested the negative impact of large cotton arrivals report issued last week by Pakistan Cotton Ginners Association (PCGA), brokers said. the report, the cotton arrivals has reached 10.08 million bales till December 1 compared with 6.58 million bales during the same period of last year. It showed phutti arrivals for the fortnight at 1.937 million bales, against 0.197 million bales of the corresponding period of last year. This indicated that total production this season may even exceed all-time high figure of around 12.1 million bales recorded in 1991-92.
Following deals were reported: 4000 bales from Multan at Rs 1875-1885; 2000 bales from Rahimyar Khan at Rs 1885-1900; 1000 bales from Yazman Mandi at 1875-1880; and 1000 bales from Gojra at Rs 1850.

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

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      1825.00        50                    1875.00

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

40 Kgs         1956.00        50                    2006.00

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