Slight fall in cotton prices after PCGA arrivals report

Thin trading was seen on the cotton market on Saturday after the issuance of Pakistan Cotton Ginners Association (PCGA) data, dealers said. The PCGA report showed better-than-expected cotton production figures, and this factor might push the prices further down, market players said. The official spot rate of grade 3 cotton was unchanged at Rs 1825 without upcountry expenses. Cotton prices tended lower both in Sindh and Punjab.
Seed-cotton followed suit and shed modestly due to higher cotton production report.
NY cotton futures dropped sharply on speculative fund sales, and the market was seen dropping more next week on the back of follow-through pressure in fibre contracts. Key March contract sank 1.20 cents to finish at 42.42 cents a lb, after dealing between 42 and 43.70 cents. Spot December slid 2.15 to 45.25 cents a pound. Losses in back months ranged from 0.30 to 0.70 cent.
Following deals were reported: 4000 bales from Multan done at Rs 1875-1885; 2000 bales from Rahimyar Khan at Rs 1885-1900; 1000 bales from Sadiqabad at Rs 1875; and 1000 bales from Gojra at Rs 1850.

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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      1825.00         50                   1875.00

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

40 Kgs         1956.00         50                   2006.00

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