Prices maintained a firm posture on the cotton market on Tuesday as ginners did not show any change in their previous attitude on rising demand from the exporting countries, brokers said. The official spot rate remained unchanged at Rs 2075, without upcountry expenses. Chinese trade deletion is here, apart from other discussions with its Pak counterparts, the team is interested in purchasing grade 11 cotton to meet its requirement.

Secondly, with the beginning of the World Trade Organisation (WTO) regime, positive developments have started appearing in the textile sector as exporters were hoping that the quota elimination in the US to increase Pak exports.

India and China would also take advantage of the opportunity, they added. They expect that the prices may hold their prevailing levels on strong demand despite comfortable supply position.

Phutti prices were mostly unchanged in Sindh at Rs 900-1050 and the same trend was seen in Punjab at Rs 900-1100. Cotton prices were at Rs 1900-2200 in Sindh and in Punjab at Rs 1950-2200, dealers said.

The NY cotton futures rose in reaction to a report that farmers would plant fewer acres of cotton this year than last, but trade was restrained by fund selling and spread activity.

The National Cotton Council released an annual survey after the market closed on Friday indicating that farmers plan to sow cotton on 13.7 million acres in 2005, below 2004's 13.8 million and trade expectations of an average of 14.2 million acres.

The New York Board of Trade's March cotton contract rose 0.41 cent to settle at 43.75 cents a lb., trading from 43.35 to 44.10 cents. It held inside the previous session's range, when the contract touched 42.40, a one-month low.

May contract cotton went up 0.46 cent, to close at 45 cents a lb. and the rest rose 0.15 to 0.58 cent.

A solo deal was witnessed as some 2000 bales of cotton from Rahimyar Khan finalised at Rs 2100.

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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      2050.00        50                    2100.00

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

40 Kgs         2197.00        50                    2247.00

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Copyright Business Recorder, 2005