Slow business was seen on the cotton market on Saturday due to lack of interest in fresh dealings by both the mills and spinners, dealers said. The official spot rate was unchanged at Rs 3,550. In the ready business, only one deal was finalised from Mir Pur Khas at Rs 3,480; dealers said.
Commenting on the sluggish trading some cotton analysts said that that both mills and spinners were on the sidelines ahead of announcement of budget, dealers said. So, the prices may show softness in the near future and likely to test Rs 3,400-3,500 level in the absences of buying interest. Resultantly the yarn per bundle also lost Rs 35-40, they added.
They said that as usual the budget is poor and business friendly, so the mills are hoping several incentives in the budget package, on the other hand, the growers and ginners were also expecting same in the budget. Falling trend in the NY cotton market was also a leading factor behind cautious behaviour of the mills and ginners, they added. On Friday, the US cotton futures fell 3 percent to close at six-week lows as a rebounding dollar sparked a sell-off across commodities.
Cotton for July delivery on ICE Futures US settled down 1.77 cents at 55.11 cents a lb - the contract's lowest close since the week ending April 26 - after trading between 56.89 and 54.85 cents. Technical charts suggested support for July cotton at between 54.65 and 52.75 cents for the coming week.
Futures for new-crop December closed down 1.52 cents at 59.57 cents a lb. Volume in July cotton stood at 11,779 lots, versus Thursday's 8,636 lots. Total volume in ICE cotton after the settlement of the last session was 14,396 contracts, versus the previous tally of 22,436 contracts, exchange data showed.
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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 3,550.00 100 3,650.00
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Equivalent
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40 Kgs 3,805.00 100 3,905.00
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