Cotton

Cotton output may fall by 30-40 percent

MULTAN (June 09 2008): The cotton sowing area has decreased at least 30 percent and production would likely to fall in the coming year by 30 to 40 percent, it is learnt here on Sunday. The stakeholders of the sector said the sowing has fallen short around 30 percent because of multiple factors.

They said one of the major reasons was not announcing of 'intervention price' of cotton, besides less availability of water, substandard cottonseed, electricity failure and fertiliser shortage and switching from cotton to rice.

The less water in the canals has also impacted the cotton crop. The cotton production over a couple of years has witnessed a decline. The cotton production in the previous year remained at 12.5 million bales and the government fixed cotton production target for 2007-08 at 14.1 million bales.

The sowing area was set at 7.8 million acres but so far the sowing area has decreased. It was also discussed on the floor of provincial assembly Punjab on Friday that the cotton crop could be affected by low availability of water in canals, as country was facing 40 percent water shortage. Agri Forum Chairman Ibrahim Mughal said a number of reasons have forced the farmers to take less interest in cotton sowing.

He said the government did not announce intervention price for cotton and it also aggravated to the issue. "The electricity is not available, diesel prices are touching highest level, fertilisers are expensive and substandard cottonseed are some of the reasons of decrease in sowing area," said Mughal adding the government set sowing target of 7.8 million acres but unfortunately it may not be able to achieve four million acre area.

He said the agriculture department did not pay attention at the sale of substandard seed and it would also another reason of decrease in sowing area and production. "Obviously, the yield would be affected by these factors," he said.

In the year 2006-07, the government provided a subsidy of Rs 200 per bag of 50 kg of phosphate and potash fertilisers to encourage balanced use of fertilisers but this year there is no subsidy on any type of fertilisers, said sources in Ministry of Food and Agriculture (Minfal). The government has fixed the seed cotton intervention price of 2006-07 at Rs 1,025 per 40 kg, as against Rs 975 in 2005-06 but this year, there is no such announcement.

Another reason for low cotton sowing is farmers' interest in rice crop. The prices of rice increased at least 200 percent and it attracted the farmers to go for the rice instead of crop, said an agriculturist, Ghulam Muhammad adding that low production of cotton would play havoc with textile industry, which was already in hot water. "If I am getting attractive price for rice without any problem then why should I go for other crop," he said.

Meanwhile according to Indus River System Authority (Irsa), water level at Tarbela Dam is 17 feet higher than the dead level of 1369 feet. Water inflow at the dam was recorded at 154,500 cusecs while outflow was at 140,000 cusecs. The water level at Mangla Dam was recorded at 1124 feet, which was 84 feet higher than the dead level of 1040 feet.

KCA raises spot rate, prices in ready business remain at Rs 3,600-4,000
SHAFI AHMAD SYED
KARACHI (June 09 2008): Rising price trend in local cotton causing reservations on the part of consumers who laid hands on only quality lots without grudging asking prices as opening for garment exporters streamed down in the reported absence of India and China hit by high cost of doing business.

The rates in ready ranged between Rs 3600-4000. During the closing session of the week KCA official spot rate was raised by Rs 50 to Rs 3750.

WORLD SCENARIO:

Cotton contract on Monday ended down as most players stayed away waiting commodity futures trading commission finding what led to distortions and wary investors liquidated modestly. Many hazy about emergence of any clear solution of probe laid hands on certain formidable player/players. However, July contract shed 0.30 cent to close at 65.44 cents, while December lost 0.21 cent to finish at 74.16 cents a pound.

On Tuesday trend continued as investor sales and nearly all the commodity values suffered setback. The effect of the CTFC probe may also have led to sort of consolidation. The findings of the probe were not announced and whatever was talked and done was in utter nervousness. However, swap is being hinted under which a floating, market or spot price specified period. There seems no agreement among the players whether options related sales or the CFTC move had pulled contracts down.

On Wednesday slight improvement was seen in cotton futures in NYCE trading. The trade buying overwhelmed investors' sales. The CTFC's finding about distortions in trading that led to abrupt rise in prices, was to be transparency in agri future markets, is still not fully accepted by the trade. Weekly export sales are awaited to give some positive hints about businesses.

On Thursday contracts ended with gains mostly due to what players said spread business. Analysts commented the firm outlook also stemmed from other commodities that traded on higher plane. The weekly export sales showed at 577,900 RBs (500lbs each) better than last week. Meteorologists are reporting serious drawback due to record heat prevailing, strong wind and blowing sand particularly in W Texas.

On Friday similar trend was apparent backed by fund buying additionally strengthened by reports from commodity markets. Players expect coming week to follow suit. The firmness, is said to have been caused also by reports of dry and hot weather in Taxes, the largest cotton growing area. "Soil moisture is badly depleted" weather pundits said.

LOCAL TRADING:

The add seeking facilities and incentives from government claiming good opportunity to export garments and earn added forex as India and China was reportedly handicapped and may drop, has led cotton prices to firm. The consumers, however, wait for opportunity for such lots, which may be acceptable to textile importers. The ginners in look out for an opportunity that had come their way kept prices firm. New crop contracts are being concluded and arrival reports are awaited to determine needs and price size.

In the meantime whatever is available is being lifted. The spot rate has reached historic size - Rs 3700 per maund. In ready off take prices range between Rs 3800 and Rs 4000. The spinners and textile manufacturers express they are still in need but chose only the quality cotton. The new crop, if all get ripe in time is booked for supply by June end July.

Any way on Tuesday, trading remained stagnated owing to perception that the ginners won't be able to hold on the stock, however, small that may be and ultimately buyers will lift at agreeable prices. They said the cotton import was not likely to cost them any lower than the ruling prices in local markets. The ready off take was lower while forward deal was noted at Rs 4000 for August 25 delivery. Current deal was only 500 bales at Rs 3500.

On Wednesday sellers were found tough and held back stocks to have more gains when the consumer return to market. Sellers know the stocks and mills needs. Only deal was struck was priced at Rs 3800 over Rs 100 to Rs 3700 spot rate. Apparently millers seem to be in trouble as they are aware cotton at this juncture is not available under local lint prices.

On Thursday a solo deal of 1400 bales was struck at Rs 3900. The cotton shortfall is encouraging cotton consumers to take advantage of assumingly falling trend in a neighbouring country. The free market economy is giving opportunity to buy and sell cotton but government should weigh why is it that cotton shortfall is experienced and imports are preferred, in season or put of the season. The season always opens on pleasant note but shortfall has become the fate of Pak growers, which is helping deficit to grow, grow and grow.

On Friday needy consumers lifted some 4000 bales at higher prices ranging between Rs 3825 to Rs 3975. The ginners are said to have nearly two million bales and are determined to sell at will. The consumers who prefer to go for imports may decide as such. The spot rate stayed at Rs 3700 on Friday.

Spot rate was raised up to Rs 3750 on Saturday. Ginners were not lowering the asking prices, perhaps till the announcement of federal budget. Falling trend in the NY cotton market is not affecting the rates in the local market, which is no doubt, a surprise for the cotton circle. A solo deal of 400 bales from Gilaywal at Rs 4000.

CORRECT DATA HELPS:

CORRECT PLANNING

The attaché at the American Embassy in Islamabad proved the first to study and release of likely cotton production during 2008-09. The sensitivity to know the correct data comes from curiosity to know and relate them to good planning. This honesty of purpose has led that country to know and reach the peak of civilisation, technology and prosperity.

Today, may be a deliberate bid, or some wrong policies to dominate, a bit of lurch here and there has impacted host of countries in Asia, Africa and elsewhere. This area to know to date, or as is so much heard today research and development, to feed the unfortunate planners to correctly visualise things to come. More particularly progress and prosperity is absent in the scheme of things.

The Attaché has shown the path, the basis has not been received at this end, but data preparation has been most abhorring job. In Pakistan, elsewhere in some parts where conditions are good and water availability is normal (though reports say some parts have been short) sowing has been in progress but tail-enders have been praying monsoon bring cheers for them. Even if God is kind and help the farmers and progress is reported considerably late.

The normal data call the growth normal and likely production as bumper, interests mushroom to float their own valued study and findings of crop position. The unfortunate planners have to pick up facts as near as possible, which generally has proved to be highly misleading. The PCGA has been regarded as handling this responsible job with tact and care. The Minfal, at some stage, steps in as is commented by highly knowledgeable circles with certain correction here and there. Then there is cotton assessment body that has to play a role, as a matter of routine. Will at any stage honest and correct reading of crops will be supplied to the planners?

Attaché sees 2008-09 of cotton production at one crore and 20 lakh bales against current production recorded around one crore/12 lakh bales. This was supplemented by imports of about 40 lakh bales. Are we heading for yet another year of shortfall?

HOW TO MAKE TEXTILE SECTOR VERITABLE?

The Prime Minister has been known by this time that he means to do away with the wrongs that have unfortunately persisted. And, indeed, setting right suffered for ignorance and bothering nothing but self-aggrandisement. What however he has not spoken anything about how he will make textile products today suffering from high cost of doing business to compete in international Market.

The experts by now might have dropped hints why it suffers from high cost of doing business and what has led for the last decade to Pakistan to remain net importers. Those countries like China, India, S Korea and even Vietnam who want to see an eye to eye to rivals set up, build or make what is going to make their country progress and prosper.

Finding fault with the facilities and system available here is some thing to hide the managerial, structural and leadership quality, which has done immense and colossal loss to economy and country. And yet Pakistanis dare not scale up the hill but counting the number of enemies beyond that. The inevitable investment is the hill top, which has been dreaded stuff making Pakistan store room for the foreign manufacturers of textile machinery, dyes and chemicals. The companies producing low varieties and claiming to have been saving foreign exchange.

Those who write in supplements that appear with time gap wonder even after 60 years chemical industry that has made counties to achieve remarkable progress and leaders of the world have shamefacedly net importers to this country. The companies producing insignificant brands of dyes and chemicals etc have no match and have till now posed any threat to dyes and chemicals being imported draining out billions of dollars.

Leaving aside the imports, which add to high cost of doing business, textile exporters insist on subsidies. Forgetting rival countries manufacture every stuff that textile sector needs such as textile machinery, units producing chemicals and dyes not only catering to the sectors needs, but exports too rival counties are offering to textile sector. God help the country!

DUTY ON RAW MATERIALS:

Perhaps Engineering Development Board (EDB) will be going through the details of the Budget to pick up points the finance minister had duly accepted the proposals. The board had in its editorial in May issue had desired that duty should be lowered in order to keep prices of finished goods at affordable level. General belief is that government has been far too conscious to facilitate exports to possibly heat the imports fat volume.

In this incentive that lower duty help products to earn edge against foreign products. When imports and exports are talked very naturally textile exports come to mind with contribution of more or less 60 percent higher than any other exports group. For sometime past the sector is dwindling and continuing so which is making authorities worry.

The exporters have been holding generally as roadblock in textile exports way the high cost of doing business. Lower duty was likely to find place in the Budget, and it was also believed that exporters will find favourable to have and edge when exported. Will the favour reach near covering the losses done so far.

With EDB comes the idea whether it needs equally serious question as to why it has been kept orphan and whether the present coalition government is seized to this? Before this lingering issue is solved eyes are fixed whether EDB's proposal has been given effect to. It has not only been concerned about welfare of exports, which it proposes to get help so that export flourish and economy by and by is sagging also get boost.

However, how truly it depicts when before ending the editorial it adds to its demand that industry turned more competitive through facilitation rather than providing undue protection."

VARIOUS TEX INDUSTRY SECTORS:

Thank God textile quota abolition exposed those sectors who contributed least and as knowledgeable circles expressed their belief, got all possible favours from banks and successive governments. Their run to the corridor of power in capital today shows their desperate bid to regain some confidence lost since so called high cost of doing business has shaken the skies.

How far they stay trust worthy is not being questioned here, but the fact that about half a dozen textile sectors operating in Sialkot (And of course other export sectors) been contributing much larger to their scope and size. But never in the past had ever come to light the fact that accredited to front runners.

The present government should reach the depth of the textile problems rather than trusting the voice reached. The high cost of doing business with all its ugly facets, which are not being discussed, here not they are worth. What the government should acknowledge is that it must mind textile sector and exports today showing disappointing trend contribution to the levelling trade deficit should not consider all the sector together but separately.

The government, which have all along been fed by bureaucrats have not always given the truth. The value-added sector like made-up garments, hosiery, towel, bedwear etc have always been over booked by the high ups in the capital. They have, until they joined the common struggle caused by high cost of doing business, they aired their anger against high cost of cotton yarn owing to in their words unbridle exports. Their shout even to the top never reached authorities with power to make decisions that yarn exports serve the purpose of their competitors.

But yarn was never, as the value-added manufacturers claimed, held in check to be available to exports of made-up, which earned (and possibly earning even today) 10 times and more. The authorities will do good to listen to reason and the selective to contributors according to the contribution.

ACTION TO MINIMISE LOSSES:

Warning that Badin facing water shortages should be among the top government priorities to heed and salvage agricultural crop from bigger loss. As a matter of fact experts in this country and even concerned authorities should take it as their failure if, Pakistan being an agricultural country, is forced to import rice, sugar, wheat and cotton. The past has been extremely wasteful for reason known to men in the streets. When God is merciful and all is well at the end of the season and harvest is declared a bumper. But all sorts of mechanism are applied to press government, which in democracy needs votes, which comes via influential, for exports. And once exports are allowed the prices start surging and hoarding goes side spread. This was besides the issues.

The warning should be heeded for some how arranging water without any bias. In this connection storage seemed to compound at tail-enders level. This particular mention of the fact demands agricultural field workers should go round detecting any possible foul play. Once again democracy return has been welcomed, which after a couple of years has invited dictators.

Should not after 60 years of independence with a Constitution beginning with the name of Allah and Islamic Republic of Pakistan, Ponder what has kept federation small and infirm and unable to give every Pakistani the right of being as such.

The authorities should begin with making seasonal crops grow to deny imports. Too much nagging is heard about shortfall in cotton production. But the available cotton with growers is not patronised with smiles - with fair return. Every rise in price is reacted with pressure to bring down prices. There is no one for umpiring how far the ginners resort to asking unfair price. The buyers and sellers are from day one at loggerheads. The need and production should be correctly determined and stood by so that justice and not the principle of supply and demand is adhered to.

The State Bank of Pakistan (SBP) in its third quarterly report urged policies to increase agriculture productivity. As the disappointing harvests of key cash crop are particularly troubling for Pakistan. The US commodity markets chief regularly has hinted at commodities malfunctions may be contributing to rising food and energy crises. What malfunctions he has in mind, and, whether those have any bearing on our market.





The Rupee
Interbank closing rates for dollar on Sunday.
Buying Rs 67.50
Selling Rs 67.60
Recorder Review: all round losses
Exchange Rates




14009.33 177.17

Sectoral Indices






Market at Close
BRIndex-30 14,009.33
KSE-30 Index 15,449.56
KSE-100 Index 13,134.56
LSE-25 Index 4,114.64
ISE-10 Index 2,985.45
Gold Per 10gm 19,928.00
KCA Spot Rate 3,700.00
Libor Rate 2.09250










World Indices
Index Closing Chg%
DJIA 12,209.81 3.13
Nasdaq 2,474.56 2.96
S&P 1,360.68 3.09
FTSE 5,906.80 1.50
DAX 6,803.81 1.99
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Nikkei 14,489.44 1.03
H.Seng 24,402.18 0.61
Sensex 15,572.18 1.25
Updated at 5:00 am Pst





NY Closing
Euro 0.6338
Sterling 0.5074
Swiss Franc 1.0185
Yen 104.92
Gold 899.00
Cotton 74.950
Oil 138.14








Economic Indicators
Annual 2006/07
Foreign Debt $38.86bn
Per Cap Income $925
GDP Growth 7.0%
Average CPI 7.77%
Monthly April
Trade Balance $-2.29bln
Exports $1.8bln
Imports $4.1bln
Weekly June 06, 2008
Reserves $11.178 bln

Cotton acreage drops in north India
9 Jun 2008 4:22 pm

Abohar - Sowing of cotton is over in north India, and the initial estimates by traders indicate at decline in acreage in the region. According to the estimates, the acreage of cotton has declined 10 per cent to 15 per cent in Punjab, 35 per cent to 40 per cent in northern Rajasthan whereas it remained same as that in previous year in Haryana.

Traders say, cotton acreage has gone down due to scarcity of water for irrigation and farmers' shift of interest towards rice crop. However, the increased sowing of BT Cotton is likely to keep the production unchanged.

Meanwhile, spot cotton lint was quoted higher by Rs 10-Rs 20/maund amid demand from millers at major markets across north India Monday.

Across Punjab, cotton lint traded at Rs 2,620-Rs 2,625/maund at Fazilka, Kotakpura, Muktasar and Bathinda; Rs 2,610/maund at Malot and Gidarbha; Rs 2,610/maund at Abohar; Rs 2,605/maund at Manasa; and at Rs 2,640/maund at Rampura, Barnala and Budhaldha.

Cotton lint traded at Rs 2,520/maund in Haryana and at Rs 2,400-Rs 2,430/maund in Rajasthan.

Cotton lint drops in Gujarat
9 Jun 2008 5:13 pm

Mumbai - Cotton lint was quoted slightly lower in Gujarat whereas prices remained steady at major spot markets across Maharashtra and Madhya Pradesh Monday.

Meanwhile, sowing of cotton has started with the onset of monsoon in Maharashtra. According to latest estimate, around 40 per cent sowing has been completed in the State. Traders say, farmers are not looking interested in sugarcane and therefore the acreage of cotton is expected to increase this season.

In Madhya Pradesh, around 20 per cent sowing of cotton has been completed, mostly on irrigated land. The State is reportedly facing shortage of cotton seeds.

At Kadi market in Gujarat, cotton lint S-6 A-grade was quoted at Rs 24,300-Rs 24,500/candy while average-grade traded at Rs 23,800-Rs 24,200/candy. Kapas got offered at Rs 650-Rs 680/maund.

In Vidarbha region of Maharashtra, the 28-mm cotton lint traded at Rs 23,200-Rs 23,600/candy; 29-mm cotton lint traded at Rs 23,700-Rs 24,200/candy.

At Sendhwa market in Madhya Pradesh, the 28-mm cotton lint traded at Rs 23,200-Rs 23,700/candy; 29-mm cotton lint traded at Rs 23,900-Rs 24,500/candy; and 30+ mm cotton lint at Rs 24,600-Rs 24,800/candy

Spot rate raised by Rs 50 for second session in a row

KARACHI (June 10 2008): The Karachi Cotton Association raised the official spot rate for the second session in a row due to higher demand by the mills, experts said. The Karachi Cotton Association (KCA) official spot rate was raised by Rs 50 at Rs 3800.

Market sources said that due to having very little stock of cotton with them, the mills indulged in forward buying. On the other hand, rising prices of cotton are also propelling them to make new deals. Other positive development in the cotton growing areas is the rains have started as most part of the southern Punjab received heavy downpour, they said.

As usual, profit seekers are in search of chance to make money raising hue and cry over the shortage of production due to the late sowing of crop and short supply of irrigation water for the crop. They said that standing crop may be safe from the mealy bug attack, if the growers continue regular spray of pesticides as a preventive measure.

It happens at regular basis every year, they (mills or spinners) try to save their business by different tactics, analysts said. On the other hand, the country is losing huge foreign exchange due to falling trend in the export of textile products because of contamination factor, they added.

It looks funny, because the country is importing cotton to meet the textile export target and expending huge foreign exchange, despite all these factors, the desired objectives are not met for the last several years.

The government claims that it is providing all possible facilities to the growers to achieve the desirable target but they express their concern for the lack of facilities, experts said. Present trend in the cotton rates is the reflection of higher oil prices in the world markets, they added. Only one deal of 400 bales exporter to mills for Karachi delivery done at Rs 4000, 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 Ex-Karachi
for Price Sales Tax @ 15%
================================================== =========
37.32 Kgs 3800.00 50 3850.00
-----------------------------------------------------------
Equivalent
-----------------------------------------------------------
40 Kgs 4072.00 50 4122.00
================================================== =========

Cotton lint climbs in north India
10 Jun 2008 4:25 pm

Abohar - Spot cotton lint was quoted higher for the second consecutive day Tuesday amid reducing stocks and constant demand from millers at major markets across north India.

Meanwhile, sowing of cotton is over in north India, and the initial estimates by traders indicate at decline in acreage in the region. According to the estimates, the acreage of cotton has declined 10 per cent to 15 per cent in Punjab, 35 per cent to 40 per cent in northern Rajasthan whereas it remained same as that in previous year in Haryana.

Traders say, cotton acreage has gone down due to scarcity of water for irrigation and farmers' shift of interest towards rice crop. However, the increased sowing of BT Cotton is likely to keep the production unchanged.

Across Punjab, cotton lint traded at Rs 2,640/maund at Fazilka, Kotakpura, Muktasar and Bathinda; Rs 2,625/maund at Malot and Gidarbha; Rs 2,625/maund at Abohar; Rs 2,615/maund at Manasa; and at Rs 2,650-Rs 2,660/maund at Rampura, Barnala and Budhaldha.

Cotton lint traded at Rs 2,540-Rs 2,560/maund in Haryana and at Rs 2,420-Rs 2,450/maund in Rajasthan.

Cotton lint gains in Maharashtra
10 Jun 2008 4:27 pm

Mumbai - Cotton lint was quoted higher in Maharashtra whereas prices remained steady amid average business at major spot markets across Gujarat and Madhya Pradesh Tuesday.

Meanwhile, sowing of cotton has started with the onset of monsoon in Maharashtra. According to latest estimate, around 40 per cent sowing has been completed in the State. Traders say, farmers are not looking interested in sugarcane and therefore the acreage of cotton is expected to increase this season.

In Madhya Pradesh, around 20 per cent sowing of cotton has been completed, mostly on irrigated land. The State is reportedly facing shortage of cotton seeds.

At Kadi market in Gujarat, cotton lint S-6 A-grade was quoted at Rs 24,300-Rs 24,500/candy while average-grade traded at Rs 23,800-Rs 24,200/candy. Kapas got offered at Rs 650-Rs 675/maund.

In Vidarbha region of Maharashtra, the 28-mm cotton lint traded at Rs 23,800-Rs 24,200/candy; 29-mm cotton lint traded at Rs 24,200-Rs 24,500/candy.

At Sendhwa market in Madhya Pradesh, the 28-mm cotton lint traded at Rs 23,200-Rs 23,700/candy; 29-mm cotton lint traded at Rs 23,900-Rs 24,500/candy; and 30+ mm cotton lint at Rs 24,600-Rs 24,800/candy.

Cotton Prices
Cotton Prices Boosted by Crude Oil's Rebound (Weekly Report)
9 June 2008 - Cotton prices rebounded on Friday, in line with a general rally on the commodity markets. Physical demand was much stronger in the past two weeks, in addition, after the A Index fell below 75 cents per pound. U.S. export sales reached a very high level, as a consequence. Prices further rose in Pakistan and in India.

LATEST RAW COTTON ARRIVALS
(Position as on 07th (June 2008)
The per day arrivals are reported around 20,000 bales.

States 2007-08 2006-07
Quantity in lakh bales of 170 kgs

Punjab 21.90 24.00
Haryana 15.75 14.95
Rajasthan 9.00 8.70
North Total 46.65 47.65
Gujarat 111.60 97.00
Maharashtra 60.75 48.80
Madhya Pradesh 20.60 18.40
Central Total 192.95 164.20
Andhra Pradesh 44.10 33.70
Karnataka 7.40 5.60
Tamil Nadu 3.30 3.25
South Total 54.80 42.55
Others 2.00 1.00
Total 296.40 255.40
Plus Loose lint 12.00 12.00
Grand Total 308.40 267.40

Stable trend in cotton market

KARACHI (June 11 2008): Firmness prevailed on the cotton market on Tuesday as ginners did not show any change in their attitude due to having approximately 65,000 unsold bales with them, experts said. The Karachi cotton Association (KCA) official spot rate remained pegged at Rs 3800, dealers said.

According to the market sources, the ginners who have small unsold stock did not show any flexibility in anticipation of further gains in the coming days. The mills are hoping that they may be able to compete the world markets after improving the quality of export goods, they said. Recent rains are good and may help in increasing the production of cotton, they said.

On Monday, cotton futures closed softer on investment sales to wipe out gains from an early run-up caused by worries over hot and dry weather in the key growing area of Texas, brokers said. Analysts said the market's focus will now wait for release of Tuesday's USDA monthly supply/demand report.

The now-benchmark December cotton contract fell 0.41 cent to conclude at 74.54 cents per lb, ranging from 74.10 to 76.13 cents. The spot July contract shed 0.52 cent to end at 66 cents, trading from 65.50 to 67.93 cents. Volume in the December contract stood at 13,171 lots at 2:59 pm EDT (1859 GMT) while July volume was at 13,224 lots. The following deals were reported as some 400 bales of cotton from Chichawatni sold at Rs 3400, 500 bales from upper Sindh at Rs 3850 and 200 bales more from the new crop of Sultanabad sold at Rs 3650 for August delivery, 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 Ex-Karachi
for Price Sales Tax @ 15%
================================================== =========
37.32 Kgs 3,800.00 50 3,850.00
Equivalent-------------------------------------------------
40 Kgs 4,072.00 50 4,122.00
================================================== =========