Rains may push cotton prices to Rs 3000

Continued rains in most parts of the country might push the cotton rates to breach the barrier of Rs 3000, dealers said on Friday. The Karachi Cotton Association (KCA) official spot rate maintained upward trend for the second day, picking up Rs 25 to Rs 2650, thus the rate picked Rs 50 within two days , they added.
General trend in the market was low as most of the participants were busy in Jumma prayers, dealers said. The preview is that under the prevailing circumstances the cotton rate has touched the high mark of Rs 2900,the rates might touch the new high of Rs 3000, which was not even thought about before rains.
The ginners were increasing the prices but the mills were not prepared to oblige them, they said. The developments are very positive for the ginners as the mills have to depend on the market trends to meet their requirements, dealers said.
The NY cotton futures were lower on the Thursday as the Benchmark December cotton on the New York Board of Trade settled down 0.06 cent, or 0.1 percent, at 61.63 cents a lb, after trading to a session high of 62.05 cents. NYBOT's December cotton peaked 62.25 cents on Wednesday, highest since September 3, as analysts began predicting that Friday's USDA report would show a drop in acreage.
The December contract on Intercontinental Exchange's NYBOT electronic cotton market was up 0.07 cent at 61.76 cents by 4:00 pm EDT (2000 GMT). Back months on NYBOT's cotton complex closed down 0.03 cent to up 0.10 cent. Open interest fell 556 lots to 201,451 lots as of Wednesday. Following deals were reported as some 600 bales of cotton from Mirpurkhas sold at Rs 2575, 400 bales of cotton from Shujabad at Rs 2900, 2000 from Multan and 400 from Tiba Sultan at Rs 2900.
THE FOLOWING DEALS WERE REPORTED: 600 bales of cotton from Mirpurkhas sold at Rs 2575, 400 bales from Shujaabad at Rs 2900, 2000 bales from Multan and 400 bales from Tiba Sultan at Rs 2900.

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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     2,650.00         50                  2,700.00

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

40 Kgs        2,840.00         50                  2,890.00

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