Upward trend was witnessed on the local cotton market on Saturday as spinners played an active role to meet the near terms requirements, dealers said. The official spot rates were higher by Rs 25 to Rs 2275, without upcountry expenses. Phutti was not available easily at the end of the season. The cotton prices improved and gained Rs 50 to Rs2300-2350 in Punjab, brokers said. The good quality of cotton depicted upward trend in Sindh at Rs 2350-2400.
According to the market sources, cotton prices depicted firmness as mills buying accelerated on rising fears about the availability of cotton after the PCGA report.
They (mills) apprehended that the phutti prices may rise further on declining arrivals, market players said. Besides, the steep fall in the unsold stock was another factor, which was worrying them and forcing to enter into forward deals, they added.
According to the spinners, the Trading Corporation of Pakistan (TCP) should start selling, so they would be able to buy the local cotton instead of overseas buying.
The NY cotton futures settled lower on steady speculative liquidation and the market may grind lower from follow-through sales next week, analysts said.
The New York Board of Trade's key May contract shed 0.39 cent to conclude at 50.94 cents a lb, in a band from 50.60 to 51.75 cents. July was flat at 52.50 cents. Except for one contract, the rest fell 0.25 to 0.45 cent.
Following deals were reported: some 4000 bales of cotton for Rahimyar Khan sold at Rs 2325-2350 and 1000 bales from Upper Sindh sold at Rs 2350-2400.
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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 2275.00 50 2325.00
Equivalent-------------------------------------------------
40 Kgs 2438.00 50 2488.00
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