Firm trend was witnessed on the cotton market on Thursday as prices maintained the overnight levels ahead of the TCP May 14 auction, dealers said. The official spot rates remained unchanged at Rs 2200, without upcountry expenses. They said that the cotton prices were within the band of Rs 2000-2200. According to the market sources, during the slow trading in the cotton market, participants welcomed the commerce Minister Humayun Akhtar's statement on Wednesday, in which he said that the government would implement the Cabinet decision to begin the hedge trading in cotton business.
He was also of the view that hedge trading in the cotton business will stabilise the market. Market sources said that routine transactions were almost nil these days in the absence of genuine buyers as most of them were busy in reviewing the TCP auction on Saturday. Some 500 bales of cotton changed hands in deliveries for Karachi and Mirpurkhas, they observed.
In the meantime, several ginners were very much conspicuous due to their presence to sell the inferior lots, they observed.
Recent firmness in the NY cotton futures, is a boosting factor for the Trading Corporation of Pakistan (TCP) as the corporation can get increased profit, dealers said.
Reuters added: The NY cotton futures ended on Wednesday near a two-week high on trade and speculative buying as shrinking supplies buoyed the market before release of a pair of US government reports, brokers said.
The New York Board of Trade's July contract went up 0.87 cent to settle at 56.80 cents a lb, trading from 55.35 to 56.90 cents. It was the best close for cotton on a spot basis since ending at 57.80 cents on May 2.
New-crop December added 0.27 to 55.84 cents, moving from 55.40 to 55.95 cents.
Following deals reported as some 400 bales of cotton for Karachi delivery at Rs 1950, 100 bales for Karachi at Rs 1925 and 200 bales of cotton from Mirpurkhas delivery for 1-0-15 August delivery at Rs 2300.
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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 2200.00 50 2250.00
Equivalent-------------------------------------------------
40 Kgs 2358.00 50 2408.00
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