Lacklustre condition was seen on the cotton market on Saturday as hide-and-seek attitude was adopted by the mills, dealers said. The official spot rate was left unchanged at Rs 3,700, they said. According to the market sources, mills were conspicuous by their absence as they were hoping that the ginners will lower prices after sharp fall in the NY cotton futures.
Some analysts were of the view that the spinners were expecting that in line with the NY cotton market, the ginners may show flexibility by cutting down the asking prices. On Friday, Cotton futures crumbled from investor liquidation to finish lower on Friday as the market corrected after recently hitting a seven-month high, brokers said. The key July cotton contract dropped 2.76 cents to end at 56.30 cents per lb, dealing from 56.11 to 59.25 cents.
On Monday, the contract finished at 60.54 cents in the highest finish for cotton since late September. Volume traded in the July contract was at 11,230 lots at 2:40 pm EDT (1840 GMT). The new-crop December cotton contract slid 2.00 cents to finish at 59.07 cents. Once the key July cotton contract fell below 58 cents, automatic sell orders kicked in and accelerated the decline. No deal reported on Friday, 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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