Cotton market: prices fall as mills show interest in low quality of lint

Prices slid on the cotton market on Monday as spinners and mills showed interest in purchasing of low variety of lint, dealers said. The official spot rate dropped by Rs 50 to Rs 5,400, dealers said. In Sindh, prices of seed cotton were at Rs 2000 and Rs 3000 and in the Punjab, rates were at Rs 2200 and Rs 3100, they said.
In the ready business, over 8000 bales of cotton changed hands between Rs 4550 and Rs 5650, they said. According to the market sources, dearth of the fine quality propelled leading participants to take interest in buying of low cotton. To cover the shortage, the country has booked nearly one lac bales of cotton from India, cotton analyst, Naseem Usman said.
Other analysts said that the many participants were on the sidelines ahead of the Pakistan Cotton Ginners Association (PCGA) fortnightly data, which is due shortly. To compete with the global market, the local exporters were trying to meet consignments on time, they said and adding it is expected that exports to the European Union (EU) on quality factor may show slight increase in the coming days.
The following deals reported: 3700 bales of cotton from Sanghar sold at Rs 4550-4725, 400 bales from Shahdadpur at Rs 4750, 600 bales from Burewala at Rs 4850, 400 bales from Fort Abbas at Rs 5350, 400 bales from Multan at Rs 5400, 400 bales from Layyah at Rs 5500, 600 bales from Mianwali at Rs 5500-5550, 600 bales from Yazman Mandi at Rs 5650 and 1000 bales from Rahim Yar Khan at Rs 5650, 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 30-01-2016

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37.324 kg         5,400       135        5,535         5,585            -50

Equivalent

40 kgs            5,787       145        5,932         5,986            -54

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