Prices remain firmer in cotton market

Firmness prevailed on the cotton market on Thursday as the prices remained upward due to uncertainty about the damage to crop during the current rains, dealers said. The Karachi Cotton Association (KCA) official spot rate was unchanged at Rs 2650, they added.
In the ready business, not a single deal was finalised due to cautious attitude by the ginners and mills , they said. Market sources said that the prices touched the season's peak at Rs 3030. They said that the ginners were increasing the prices of cotton as they know that the spinners will pay the higher rates under the unclear situation about the crop size.
Cotton analyst, Naseem Usman said it seems that the prices might go up, if the rains continue in the cotton belt. The New York cotton market was closed due to Independence Day holiday in the United States, dealer 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     2,650.00         50                  2,700.00

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

40 Kgs        2,840.00         50                  2,890.00

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