Official spot rate saved from further decline on the cotton market on Thursday as any positive outcome is keenly watched by the cotton circles after the expected discussions between the government and textile mills, dealers said. The Karachi Cotton Association (KCA) official spot rate was left unchanged at Rs 6450.
In the ready business, for the third day in a row, not a single deal finalised due to lack of buying interest, they said. In past the textile ministry held several meetings to keep a balance between value-added sector and textile mills but in vein, some experts said.
Now, it looks that both the parties are not satisfied with the over all performance of the government and so the issue is lingering on, instead of being solved, they observed. It's a fact that both parties are in loss if the issue pro-longes, but the serious matter is that the country is suffering as a result of fall in the foreign exchange earning by the textile sector, they added.
On Wednesday the NY cotton futures closed higher as demand optimism from China and technical strength boosted prices, traders said. The key July cotton contract climbed 1.08 cents to end at 83.28 cents per lb, trading from 81.75 to 84.13 cents. Volume traded in the July contract stood at 15,293 lots at 2:30 pm EDT (1830 GMT). New-crop December cotton futures ended 0.2 cent higher at 78.11 cents, ranging from 77.66 to 78.24 cents.
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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 6,450.00 100 6,550.00
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Equivalent
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40 Kgs 6,912.00 100 7,012.00
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