Slow, selective buying witnessed on cotton market

Lack of buying interest was seen on the cotton market on Monday due to short unsold stock of cotton of fine type, dealers said. The official spot rate was unchanged at Rs 6000, they said. In the ready business, nearly 600 bales of cotton changed hands between Rs 5000-6100, they said. The prices of seedcotton from Sindh and Punjab per 40kg were higher by Rs 100 to Rs 2600-2700, they said.
Market sources said fresh cotton arrivals started, but most of the mills kept to sidelines due to quality factor. Monsoon rain may begin in a couple of days, which could be good for the standing crop but if rain lasted for many days, may not be beneficial for the cotton crop and likely to hurt quality, they said. According to a report, rains in China's major corn and cotton producing provinces this week will give much needed relief to drought-stricken fields, although some areas risk being hit by floods, the country's weather bureau said.
The following deals reported: 200 bales of cotton from Haroonabad sold at Rs 5000, 300 bales of cotton from Burewala at Rs 6000 and 100 bales of cotton from Khanewal at Rs 6100.

===========================================================================

The KCA Official Spot Rate for Local Dealings in Pak Rupees

---------------------------------------------------------------------------

FOR BASE GRADE 3 STAPLE LENGTH 1-1/32"

---------------------------------------------------------------------------

                                    MICRONAIRE VALUE BETWEEN 3.8 TO 4.9 NCL

===========================================================================

Rate              Ex-Gin   Upcountry   Spot Rate    Spot Rate    Difference

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

                                                  on 23.06.2012

===========================================================================

37.324 Kgs       6,000       130       6,130        6,130               NIL

---------------------------------------------------------------------------

Equivalent

---------------------------------------------------------------------------

40 Kgs           6,430       130       6,560        6,560               NIL

===========================================================================