Improved activity was seen in the local cotton market on Thursday as heavy rains and speculations of pest attack in the cotton growing area propelled some mills and spinners to buy to meet the urgent needs, dealers said. The Karachi Cotton Association (KCA) official spot rate was unchanged at Rs 2350, without upcountry expenses.
Market sources said that mills who were expecting that the prices will come down as the deadline of August 14 is not now far away. The government has asked the Trading Corporation of Pakistan (TCP) to sell all remaining stock with it or export, textile experts said.
Market sources said that they were observing less buying interest by the mills and spinners in the TCP auctions. In the meantime, the TCP sold 17,500 bales of cotton in Wednesday's auction.
According to the market sources, the NY cotton futures settled easier on Wednesday due to light speculative sales as most players stayed on the sidelines due to a dearth in news, with some waiting for release of a government report shortly, analysts said.
The New York Board of Trade's December cotton contract shed 0.43 cent to close at 51.46 cents a lb., dealing from 50.95 to 51.80 cents. March fell 0.48 to 53.55 cents.
Following deals reported on Thursday; they were 200 bales of cotton from Sanghar at Rs 2350, 100 bales from Mirpurkhas at Rs 2325 and same figure from same station at Rs 2350.
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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 2350.00 50 2400.00
Equivalent-------------------------------------------------
40 Kgs 2518.00 50 2568.00
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