Small business was witnessed on the cotton market on Tuesday during the day, dealers said. The official spot rate was unchanged at Rs 6700, they said. In ready session, approximately 1400 bales of cotton changed hands between Rs 6700-6940, they said. Some brokers said that trading activity improved following the fresh buying by mills and spinners.
Cotton analyst, Naseem Usman said that the textile industry is suffering from losses in the country. Other experts said that inflows of yarn and fabrics through illegal channels are hurting the domestic industry as a result many industries started closing down. These discouraging factors creating financial problems, they said. Besides, news coming from the fields that after sowing many growers were facing shortage of irrigation water, they added.
Reuters adds: ICE cotton futures fell to a three-week low on Monday as favourable planting conditions across major producing areas across the United States and the world raised prospects of better production. The July cotton contract on ICE Futures US settled down 0.75 percent at 77.19 cents per lb, after touching its lowest since April 17 at 77.05 cents earlier in the session.
The US Department of Agriculture's World Agricultural Supply and Demand Estimates (WASDE) report is due on Wednesday. The July cotton contract on ICE Futures US settled down 0.58 cent, or 0.75 percent, at 77.19 cents per lb. It traded within a range of 77.05 and 77.77 cents a lb. The following deals reported: some 400 bales of cotton from Fort Abbas at Rs 6940, 730 bales from Jalalpur at Rs 6800 and 244 bales from Rahim Yar Khan at Rs 6700, 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 1-1/16"
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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 08-05-2017
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37.324 kg 6,700 135 6,835 6,835 Nil
Equivalent
40 kgs 7,180 145 7,325 7,325 Nil
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