Modest business seen on cotton market

Trading activity improved on the cotton market on Thursday as spinners made some fresh buying to meet their requirements, dealers said The Karachi Cotton Association (KCA) official spot rate was unchanged at Rs 2600, they added. In the ready business, nearly 3000 bales of cotton changed hands between Rs 2550-2700 due to better quality, they said.
Some brokers said that the mills started buying of good quality cotton from the new crop at the higher. It is expected that the prices may not fluctuate sharply as estimate for the new season cotton production is good, they said.
In the meantime, it was observed that activity could not improve as was speculated before the budget (2007-08), they said. The reason stated is that the textile sector is not happy with the announcements of import levy and the high wages.
The industry is hoping that the relief package would help them, the textile policy is likely at the end of month, they said. The NY cotton futures gave up weakness as the New York Board of Trade's open-outcry July cotton contract climbed 0.84 cent to end at 52.44 cents per lb, dealing between 51.31 and 52.60 cents. The new-crop December cotton contract rose 0.70 to 57.99 cents. Back months increased from 0.40 to 1.85 cents. Intercontinental Exchange's NYBoT electronic cotton market showed the July contract up 0.71 cent to 52.31 cents at 2:35 pm EDT (1835 GMT).
YHE FOLLOWING DEALS WERE REPORTED: 300 bales of cotton from Sindh sold at Rs 2550 (exporter to mill) Karachi delivery, 2100 bales from Khanpur at Rs 2700 and 273 bales of cotton from Chundko at Rs 2550.

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

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      2600.00        50                    2650.00

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

40 Kgs         2786.00        50                    2836.00

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