Steady trend witnessed on cotton market

Steady trend was seen on the cotton market on Monday following the final cotton figure issued by the Pakistan Cotton Ginners Association (PCGA), showing a shortfall of nearly 250,000 bales, brokers said. The Karachi Cotton Association (KCA) official spot rate was unchanged at Rs 3350. Two deals were finalised between Rs 3400 and 3600, they said.
Market sources said that just after the arrival of final figure of cotton many spinners were on the sidelines just to observe the developing situation on the price front. The cotton figure released by the Pakistan Cotton Ginners Association (PCGA), in its report ended May 1, 2008, is showing a fall of 250,000 bales at 11.352 million bales. Some brokers were expecting that the ginners may bring a little bit flexibility in their attitudes as they still have nearly 5 lakh bales of unsold stock to dispose off.
The mills were sidelined due to higher trend in the prices and cost of production, besides falling trend in the textile items may discourage to make fresh deals at the high prices, they said. The following deals were reported as some 1400 bales of cotton from Sadiqabad sold at Rs 3400 and 200 bales from Khanpur at Rs 3600, they added.

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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      3350.00        50                    3400.00

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

40 Kgs         3590.00        50                    3640.00

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