Prices turn lower in subdued business on cotton market in absence of demand

Trading activity was down on the cotton market on Monday in the absence of active mills' demand and also because of Luner year holiday in China, dealers said. The official spot rate was unchanged at Rs 5,500, they said. Prices of seedcotton in Sindh were at Rs 1800-2350 and in the Punjab at Rs 2000-2600, they said.
In ready dealings about 4,000 bales of cotton changed hands at Rs 4,500-5600, they added. In fact the mills and spinners were on the sidelines due to lack of buying interest as many traders were worried about the present situation because they could not achieve any booking order in the Germany exhibition, some analysts said.
They (cotton traders) hope for some buying from China and India in the near future, they said. In the meantime, the ginners were trying to sell the unsold stock to keep themselves away from the future losses, they said. Most of the Asian markets will be closed for three days for the lunar New Year holidays, so investors in India and Pakistan also were on the sidelines due to lack of fresh leads, experts said.
The following deals were reported: 200 bales of cotton from Shahdad Pur sold at Rs 4500, 400 bales of cotton from Othal at Rs 5275, 600 bales of cotton from Upper Sindh at Rs 5500, 1000 bales of cotton from Haroonabad at Rs 5250/5300, 1000 bales of cotton from Sadiqabad at Rs 5600, 600 bakles of cotton from Rahim yar Khan at Rs 5600.

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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"

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                                    MICRONAIRE VALUE BETWEEN 3.8 TO 4.9 NCL

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Rate              Ex-Gin   Upcountry   Spot Rate    Spot Rate    Difference

                    For      Price     Ex-Karachi  Ex. KHI. As   Ex-Karachi

                                                  on 14.01.2012

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37.324 Kgs       5,500       130       5,630        5,630               NIL

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Equivalent

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40 Kgs           5,894       130       6,024        6,024               NIL

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