Activity picks up on cotton market

Trading activity picked up on the cotton market on Thursday as many spinners were active amid hovering fears that recent rains in Punjab cotton belt may delay arrival and may cause higher trend in the prices, dealers said.
The Karachi Cotton Association (KCA) official spot rate was unchanged at Rs 2600, they added. Nearly 3000 bales of cotton were sold, between Rs 2525-2800, they said and added that fine quality of cotton sold at Rs 2800, which is the highest rate of the current season.
Many spinners were covering the forward deals anticipating further rise in the prices in the coming days as the heavy rains may hurt the standing crop, some brokers said. The government plan to officially start sowing of the biotech (Bt) cotton was not finalised as the Ministry of Food Agriculture and Livestock (Minfal) is chalking out a plan, they said. They also said that continued rise in the NY cotton futures may help in raising the prices locally, as well.
The New York Board of Trade's open-outcry July cotton contract went up 1.45 cents to end at 55.75 cents per lb., moving from 53.75 to 56.50 cents. It was the highest close for cotton on a spot basis since March. The benchmark December cotton contract jumped 2.32 cents to close at 61.42 cents, having traded from 59 cents to the lifetime high of 62.10 cents.
The rest increased from 2.00 to 2.50 cents. Intercontinental Exchange's NYBOT electronic cotton market showed the July contract up 1.11 cents to 55.41 cents at 2:33 pm.
The following deals were finalised : 200 bales of cotton from Sultanabad sold at Rs 2525, 1000 bales from Shujabad at Rs 2800 and 1100 bales from Tiba Sultanpur at the same rate, 300 bales from Dherki at R2550 and 400 bales from Punjab cotton at Rs 2400 (mill to mill Karachi delivery).

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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      2600.00        50                    2650.00

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

40 Kgs         2786.00        50                    2836.00

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