Easier trend prevailed on the cotton market on Friday in the process of modest trading activity, dealers said. The official spot rate was inert at Rs 5400, dealers said. In the ready session, around 2600 bales of cotton finalised between Rs 5200 and Rs 5450, they said. Seed cotton prices in Sindh were same at Rs 2400-2500 and in Punjab rates were at Rs 2600 and Rs 2700, they said.
According to the market sources, some ginning factories have started operation but as a whole volume of business is still low due to less buying interest among leading buyers. Cotton analyst, Naseem Usman said that activity is still slow not only in Pakistan, the world is facing sluggish business for many years. Locally, trading activity will pick up, but it will take some time.
Reuters adds: ICE cotton futures rose on Thursday on weakness in the US dollar after a US government report showed export sales had risen modestly over the previous week, though prices remained within the range of the prior session. December cotton on ICE Futures US settled up by 0.2 cent on Thursday, a 0.3 percent gain, at 64.72 cents per pound. It traded within a range of 64.45 to 65.03 cents a pound.
The US Department of Agriculture's weekly export sales report showed net sales of 52,600 bales last week for the 2014/15 crop, up 21 percent from the prior week, and shipments of 209,000 bales, down 33 percent from the prior week. Total futures market volume fell by 9,978 to 18,537 lots. Data showed total open interest fell by 4,674 to 164,771 contracts in the previous session. The following deal reported, 2000 bales of cotton from Khanpur at Rs 5450, 200 bales from Golarchi at Rs 5000 for July first delivery, same figure from Kotri at Rs 5150 and same number from Sanghar at Rs 5200, 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 18.06.2015
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37.324 Kgs 5,400 150 5,550 5,550 NIL
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Equivalent
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40 Kgs 5,787 160 5,947 5,947 NIL
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