Cotton prices rise on higher demand

Steady trend was seen on the cotton market on Saturday as prices showed upward trend following the rising demand by the mills, dealers said. The Karachi Cotton Association (KCA) official spot rate was inert at Rs 2900.
The cotton trading was seen at Rs 2775-2850 in Sindh and in Punjab it was at Rs 2950-3000, dealers said. Phutti prices in Sindh were at Rs 1250-1275 and in Punjab at Rs 1325-1375 in Punjab, dealers said. Mills were paying high rate as most of the deals finalised in the local market based on the quality of cotton, dealers said.
They said that significant rise in the mills demand provided an opportunity to the ginners to increase the asking prices but, they said that it is also a fact that steady arrivals of phutti propelled them to think about the developments in the new circumstances.
In the meantime, some growers and ginners, who were not able to hold due to storage problem, are selling phutti at the prevailing rates, dealers said. They said that there was no immediate impact of the falling prices in the New York cotton market
The NY cotton futures maintained the overnight firmness as the New York Board of Trade's key open-outcry December cotton contract settled with a 1.90-cent gain at 60.97 cents per lb, and reached its highest level since August 10 at 61.80 cents. The session low was 60.35 cents, well over the previous session high.
March cotton jumped 2.11 cents to end at 64.31 cents. Other contracts settled 1.90 to 2.10 cents higher. On the Intercontinental Exchange NYBOT electronic cotton market, the December cotton contract was 2.08 cents higher at 61.15 cents by 3:27 pm EDT (1927 GMT).
THE FOLLOWING DEALS WERE REPORTED: 2000 bales of cotton from Shahdadpur sold at Rs 2775/2850, 1600 bales from Tando Adam at Rs 2775/2850, 1000 bales from Sanghar at Rs 2775/2825, 1400 bales from Mirpurkhas at Rs 2750/2800, 600 bales from Sakrand at Rs 2850.
400 bales from Nawabshah at Rs 2850, 1000 from Shahpur Chakar at Rs 2775/2825, 400 bales from Chichawatni at Rs 2925, 800 bales from Burewala at Rs 2850/3000, 400 bales from Sahiwal at Rs 2950/3000, 600 bales from Haroonabad at Rs 2950, 800 bales from Pakpattan at Rs 2975, and 400 bales from Garmaraja at Rs 2950, dealers 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      2900.00        50                    2950.00

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

40 Kgs         3108.00        50                    3158.00

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