Lint prices soar, spot rate raised sharply by Rs 300 on cotton market

Bullish sentiment was again witnessed on the cotton market on Monday as the prices are still on the track of international market, brokers said. The Karachi Cotton Association (KCA) spot rate was raised sharply by Rs 300 to Rs 9500, they said. Seed cotton prices in Sindh and Punjab were at Rs 3,900-4,500, they said.
In ready, nearly 3000 bales of cotton changed hand between Rs 9700-9800, they added. Market sources said that the cotton market moved up due to persistent rising trend in the NY cotton futures. In the meantime, the mills were reluctant buyer due to same reason. This is just because of backdrop of short crop and damage to production in floods, they said.
In fact, there was no let-up in the speculative rise in the NY cotton futures, which appeared one of the main factor behind the increase in the local market, they added. Now under the circumstance, it is little bit difficult to analyse the future price outlook due to big supply gap. It appears pretty difficult to fill in at cheaper rates, experts said. In short-term we can expect that prices may again hit the historic level at Rs 10,000, they said.
The following deals were reported: 800 bales of cotton from Khanpur sold at Rs 9700, 1200 bales from Upper Sindh at Rs 9700-9800, 600 bales from Rahim Yar khan at Rs 9700, 400 bales of cotton from Sadiqabad at Rs 9700 and same figure from Rajan pur at the same rate, they said.

===========================================================================
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    Spot Rate    Difference
                    For      Price     Ex-Karachi  Ex. KHI. As   Ex-Karachi
                                                  on 01.01.2011
===========================================================================
37.324 Kgs       9,500       120       9,620        9,320              +300
---------------------------------------------------------------------------
Equivalent
---------------------------------------------------------------------------
40 Kgs          10,181       120      10,301        9,980              +321
===========================================================================