Sharp fall seen in seed-cotton prices

Comparatively low activity was seen on cotton market on Wednesday in the absence of mills and textile sector demand, dealers said. The official spot rate of grade 3 cotton was unchanged at Rs 1925, without upcountry expenses. In Punjab, cotton prices fell to Rs 1825-Rs 1975 per maund, while in Sindh they drifted to Rs 1775-1950. Seed-cotton prices also fell sharply, in Punjab at Rs 825-920 and to Rs 750-870 in Sindh.
According to market sources, leading buyers were not very active on quality reasons and were probably waiting for further decline in prices of better type cotton. But TCP and exporters were busy in routine trading, they said.
Another reason of thin business was that market participants were analysing the impact of inter-ministerial committee discussion with the government on cotton prices, leading brokers said.
They said that the government is mulling to ask Trading Corporation of Pakistan (TCP) to buy 7000 bales of cotton per grower, instead of 6000.
Satisfactory position of cotton production in the local market as well as in the world markets pushed the prices lower, analysts said.
To minimise the growers' production losses, the government is trying to ensure the presence of TCP in the market and has rejected the All Pakistan Textile Manufacturing Association (Aptma) demand to keep TCP away from cotton procurement operation.
New York cotton futures finished mixed as sales by small speculators nudged. Benchmark March contract was down. The key March cotton contract on the New York Board of Trade fell 0.44 cent to close at 43.55 cents a lb, moving from 43.40 to 44.25 cents. Spot December contract gained 0.22 cent to 49 cents, with the rest 0.10 cent firmer to 0.10 cent softer.
Following deals were reported: 1000 bales of Rajabpur at Rs 1975-1980; 1500 bales from Bahawalpur at Rs 1950-1990; 1500 bales from Alipur at Rs 1980-1990; 1400 bales from Shujabad at Rs 1975-2000; 2000 bales of Rahimyar Khan at Rs 1980-1990; 1000 bales of Khanpur at Rs 1980-1990; 3000 bales of upper Sindh at Rs 1975; 1000 bales of Bahawalnagar at Rs 1925-1950; and 400 bales of Sanghar at Rs 1775-1800.

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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      1925.00        50                    1975.00

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

40 Kgs         2063.00        50                    2113.00

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