Prices showed steady trend on the cotton market on Friday, as several mills took part in fresh purchasing in anticipation of further rise in the rate, dealers said. The official spot rate was left unchanged at Rs 3,700. Nearly 10,000 bales of low and fine cotton changed hands between Rs 3,425-3,800; they said.
According to the market sources, the mills gave up wait-and-see attitude and again started buying cotton to meet the near-term need. The ginners have not much unsold stock, so they did not lower the asking prices as they also did not want to lose chance of the profit earning, they said. They said that erratic movement in the NY cotton futures propelled the mills to think about flexibility in attitude of ginners toward prices.
It is likely that the Trading Corporation of Pakistan (TCP) may enter the market any time, the interesting thing to note is how the prices move after it's participation? On Thursday, the NY cotton futures finished slightly firmer as the market consolidated after slipping off a seven-month peak as players awaited leads on the next move, brokers said.
The key July cotton contract rose a meagre 0.02 cent to end at 59.06 cents per lb, dealing from 58.05 to 59.29 cents. On Monday, the contract finished at 60.54 cents in the highest finish for cotton since late September 2008. Volume traded in the July contract was at 6,941 lots at 2:42 pm EDT (1842 GMT). New-crop December added 0.04 cent to finish at 61.07 cents.
THE FOLLOWING DEALS WERE REPORTED: 150 bales of cotton from Khipro sold at Rs 3,450; 300 bales from Noabad at Rs 3,625; 900 bales from Nawab Shah at Rs 3,450; 1,000 bales from Khan Pur Mehar at Rs 3,625; 400 bales from Daharki at Rs 3700, 600 bales from Ghotki at Rs 3,800; 800 bales from Dunia Pur at Rs 3,725; 600 bales from Kacha Khu at Rs 3,750 and 3,000 bales from Karoor Pacca at Rs 3,550; 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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37.324 Kgs 3,700.00 100 3,800.00
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Equivalent
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40 Kgs 3,965.00 100 4,065.00
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