Both buyers and sellers adopted wait-and-see attitudes on the cotton market on Thursday to observe situation after Trading Corporation of Pakistan (TCP)'s entry into the market, dealers said. The official spot rate was unchanged at Rs 5,600 dealers said. In the Punjab, a very small size of seed-cotton left with the ginners, showed no change for inferior type at Rs 3100 while best quality picked up Rs 200 to Rs 3400, they said.
In the ready business, not a single deal finalised till our going to the press, they said. According to the market sources, the ginners showed no interest in fresh selling, anticipating better rates as compare to the current prices. Cotton analyst, Naseem Usman said that on the other hand, the mills and spinners also kept on the sidelines just to take a sigh of relief.
Other brokers said that despite the Trading Corporation of Pakistan (TCP) intervention in the market may not help to lower current prices due to dwindling stock with the ginners. Reuters adds: Cotton futures rose slightly higher in late trading on Wednesday supported by the US Federal Reserve's announcement to keep interest rates unchanged.
The Fed's statement indicating it was not in a hurry to raise rates gave speculators freedom to continue with their long positions, said Louis Rose, independent cotton trader and consultant with Risk Analytics in Memphis, Tennessee. While the Fed left the door open to a rate hike in June, its statement implied that it was in no hurry to follow on from its December rate rise. The July cotton contract on ICE Futures US settled up 0.32 cent, or 0.50 percent, at 64.15 cents per lb. It traded within a range of 63.41 and 64.27 cents a lb.
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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 27-04-2016
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37.324 kg 5,600 135 5,735 5,735 NIL
Equivalent
40 kgs 6,002 145 6,147 6,147 NIL
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