The Trading Corporation of Pakistan (TCP) received positive response in it's Saturday's auction, dealers said. The KCA official spot rates maintained the overnight levels at Rs 2250, without upcountry expenses. Market sources said that the 66 mills participated in the Saturday's TCP auction for sale of 1,50,000 bales of cotton. The corporation got highest bid from the Bhawalpur at Rs 2325 and the lowest from Shikarpur at Rs 2226, brokers said. Acceptance of bids by the TCP will be announced on Monday. Commenting on the fresh increase in the prices, experts said that the US restrictions on some Chinese textile items helped the prices in the local market to move up with modest gain.
As a result of ban, the local mills showed interest in the forward buying, they said.
According to the market sources, cotton futures closed soft on Friday but bounced off a fresh three-month low as locals sold then covered short positions while underlying export business and call option buying remained supportive.
The New York Board of Trade's July contract ended 0.10 cent easier at 50.05 cents a lb., trading from 50.75 cents to 49.810 cents, its lowest price since February 25. New-crop December fell 0.20 cent to 51.75 cents, after moving from 52.60 to 51.75 cents. The rest closed down from 0.22 to 0.07 cent.
Some 200 bales of cotton for Karachi delivery finalised at Rs 2275, dealers said.
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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 2250.00 50 2300.00
Equivalent-------------------------------------------------
40 Kgs 2411.00 50 2461.00
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