According to the market sources, exporters entered the market in a big way to make fresh deals and some mills buying was also observed. The best quality of cotton from Upper Sindh and Khanpur were sold at Rs 2200, dealers said.
Cotton analysts observed that if the government plans to export cotton then primarily it has to see that the local demand is fully met.
If there are enough stocks, export must be allowed but if there is fear of cotton shortage in future, then export would not be useful for the country, they said.
In that case import of cotton from other countries is bound to become necessary, they observed.
Some times ago, buyers were on the sideline to see prices come down on their psychological levels but under the circumstances, the scenario has changed all together as sellers were hesitating to finalise the deals on perception of the higher prices in the coming days, cotton viewers observed.
Under the circumstances, it seems that the prices will remain firm on rising demand from all sides, they said and observed that the TCP is on the sideline as it played an important role in stabilising prices of the cotton during the last three months.
At the end of 2004, the cotton prices started falling on growing expectations about the bumper cotton crop the world over, experts said.
After observing no respite in declining trend in the cotton prices, the TCP jumped into the market and started picking up the stock, brokers said.
According to the TCP, the country has produced nearly 13.7 million bales from which some 1.5 million bales have reached in its godowns so far and by the end of season the figure would be two million.
The TCP move and heavy rains in the upcountry centres minimised the growers and ginners grievances and stabilised prices as well, brokers said. Now the TCP has been in the commanding position regarding selling of cotton.
Rains in the Punjab and Sindh slightly hit the cotton quality, which was also an aiding factor for the firm trend in the prices.
The textile millers need more cotton to meet their requirement and a Chinese team on a visit to Pakistan has shown they still need 8.5 million bales to meet their 2005 requirements.
At present, the poor growers might be able to get comparatively better prices than 2003-04, last year they might have already sold their entire stocks.
Thus, it enables the TCP to pick up the higher bidders from among Pak exporters, foreign importers, Chinese buyers and the local textile mills, textile circle observed.
According the foreign analysts cotton futures settled slightly firmer on speculative buying in activity which featured players transferring their positions out of spot March before the delivery period this month.
The New York Board of Trade's key March cotton contract gained 0.39 cent to finish at 44.27 cents a lb, dealing from 43.75 to 44.50 cents. May contract rose 0.43 to 45.75 cents. Except for one contract, back months advanced 0.10 to 0.65 cent.
Following deals were reported: 4000 bales of cotton from Upper Sindh at Rs 2175-2200, 1500 bales from Rahimyar Khan at Rs 2100-2150, 2000 bales from Khanpur at Rs 2150-2200, 400 bales from Mangi Banglow at Rs:2150, 600 bales from Bhawalpur at Rs 2175, 800 bales from Karor Pacca at rs 2100-2175, same figure from Kuniya pur at Rs 2175 and bales 1400 from Jalalpur at Rs 2150-2175.
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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 2100.00 50 2150.00
Equivalent-------------------------------------------------
40 Kgs 2251.00 50 2301.00
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