Sluggish trend persisted on the cotton market on Saturday owing to less demand by leading participants, dealers said. The official spot rate was unchanged at Rs 5,300, dealers said. In Sindh and Punjab prices of seed cotton were at Rs 1600 and Rs 2800, they said. In the ready business, over 2200 bales of cotton changed hands between Rs 4800 and Rs 5400, they said.
Market sources said that under the circumstances, buyers were not looking interesting in new deals following the weak economic condition the world over. Some analysts said that surprising thing is that despite the fact cotton stock is diminishing with the passage of time and little hope of a rise in arrival figures, panic buying not seen during the last sessions.
Cotton analyst, Naseem Usman said that news of cut in cotton production by China may bring a kind of stability in the market. Besides, conference on cotton business and problems related to cotton will be held in India (Gova) from February 22-24, most of cotton producing countries likely to take part, including China and Pakistan, he added. Besides, sliding prices in commodities, keeping markets shaky around the globe, other viewers said.
Reuters adds: Cotton futures eased on Friday, retreating from the previous day's more than one-week high under pressure from selling across commodities and worries over excess inventories that offset a strong export report. US export sales of upland cotton totalled 308,800 running bales, a marketing year high, in the week ended February 11, up 36 percent from the previous week, according to US government data released on Friday, delayed one day by a government holiday. The most-active May cotton contract on ICE Futures US settled down 0.16 cent, or 0.27 percent, at 59.54 cents per lb, after hitting 59.35 cents a lb. The following deals reported: 200 bales of cotton from Burewala sold at Rs 4800 and 2000 bales from Sadiqabad at Rs 5500, dealers said.
===========================================================================
The KCA Official Spot Rate for Local Dealings in Pakistan 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 19.02.2016
===========================================================================
37.324 kg 5,300 135 5,435 5,435 NIL
Equivalent
40 kgs 5,680 145 5,825 5,825 NIL
===========================================================================
Comments
Comments are closed.