Subdued business on cotton market

Limited number of deals finalised on the cotton market on Monday as leading buyers were on the sidelines in the process of trading, dealers said. The official spot rate was unchanged at Rs 5300, dealers said. So, in the ready session, over 2,000 bales of cotton changed hands between Rs 4300 and Rs 5500 (conditional), they said.
The prices of seed cotton in Sindh were at Rs 1900 and Rs 2500 and in Punjab rates were at Rs 2200 and Rs 3000, they said. Market sources said that mills and spinners kept on the sidelines as ginners were not ready to oblige them in anticipation of rise in prices in times to come.
Cotton analyst, Naseem Usman attributed the fall in volume of business to cautious buying by spinners as selling rates were mostly based on quality of lint. In fact, the buyers were mulling that the sellers may bring down rates, after the Pakistan Cotton Ginners' Association (PCGA) report, which is showing cotton production went up by 11 percent to 14.8 million bales.
The ginners were holding lint cotton because they are not in a hurry to dispose off unsold stock due to better-than-expected profit in the near future, other brokers said. The following deals reported: 400 bales of cotton from Moro sold at Rs 5500, 227 bales from Kandiaro sold at the same rate, 540 bales from Rohri at Rs 4300 and 1000 bales from Bahawalpur at Rs 5000, they said.

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The KCA Official Spot Rate for Local Dealings in Pakistan 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 18.04.2015

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37.324 Kgs         5,300       150        5,450        5,450            NIL

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Equivalent

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40 Kgs             5,680       160        5,840        5,840            NIL

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