Bearish sentiment on cotton market

Prices continued downward movement on cotton market on Saturday in low activity as leading buyers including mills preferred to remain on sidelines on anticipation of further erosion in prices, dealers said.
The official spot rate of grade 3 cotton was reduced by Rs 25 to Rs 2015, without upcountry expenses.
Phutti (seed-cotton) prices in Sindh were reported at Rs 810 to Rs 900. In Punjab stations, the rate ranging between Rs 875 and Rs 925.
Market sources said that the main buyers were not taking interest in fresh buying on the present levels and were waiting for new arrival figures of phutti (seed-cotton). They observed that due to expectations of rise in arrival figures, prices would be falling and might continue the trend, and added that ginners were not prepared to hold back stock for a long time and were accepting offers at lower prices.
NY cotton futures settled mixed as speculative sales were offset by trade buying, with players marking time ahead of the US elections next week and release of several government reports, analysts said.
December contract lost 0.33 cent to close at 44.98 cents a lb, ranging between 44.65 and 45.80 cents. March gained 0.03 cent to 44.57 cents. The rest of the board ranged from 0.26 cent softer to 0.32 cent better.
Following deals were struck: 1000 bales of Alipur at Rs 2005/2050; 1800 bales from Sadiqabad at Rs 2050; 600 bales of Uch at Rs 2050; and 1000 bales of Mehmodabad at Rs 2050.

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The KCA Official Spot Rate for Local Dealings in Pak Rupees

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FOR BASE GRADE 3 STAPLE LENGTH 1-1/32"

 MICRONAIRE VALUE BETWEEN 3.8 TO 4.9 NCL

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Rate           Ex-Gin     Upcountry    Spot Rate Ex-Karachi

for            Price                        Sales Tax @ 15%

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37.32 Kgs          2015.00         50               2065.00

Equivalent-------------------------------------------------

40 Kgs             2159.00         50               2200.00

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