Modest trading was seen on the cotton market on Monday as mills continued sporadic buying to cover their near-term requirements, relevant sources said. The official spot rate remained unchanged at Rs 2175, without upcountry expenses. According to the market sources, due to short supply position, the cotton prices maintained weekend levels in the Punjab and Sindh around Rs 2250-2275, dealers said. The phutti prices also maintained last levels at Rs 900-1050 in Sindh and Punjab.

They said that the business was thin as phutti arrivals were tight and the NY markets were closed for the President Day holiday.

Due to dearth of the quality cotton, the government might plan to import to meet the local demand, they added.

A solo deal of 1200 bales of cotton finalised from Melsi at Rs 2250. Some deals also changed hands from Rahim Yar Khan and Nawabshah but figure and amount could not be confirmed , 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      2175.00        50                    2225.00

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

40 Kgs         2331.00        50                    2381.00

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Copyright Business Recorder, 2005