Cotton prices drift lower

Declining trend persisted on the cotton market on Tuesday as prices drifted further lower following the TCP news, dealers said. The official spot rate continued overnight weakness, shedding more Rs 25 to Rs 2275, without upcountry expenses. The phutti prices mostly maintained the overnight levels Rs 925-1075 in both Sindh and Punjab and the cotton prices followed the same path and did not show any change at Rs 2150-2350 in Sindh and in Punjab, brokers said.
According to the market sources, the TCP will sell its cotton stocks at Rs 2500 per maund.
They were of the opinion that the mills and spinners might prefer to purchase cotton from the ginners at the lower prices.
Commenting on the fresh TCP move, they said it seems that the factor behind the TCP's decision to sell cotton in the local market at the higher rate is to help the ginners in selling off all the unsold inferior quality cotton stock.
The NY cotton futures closed softer on late speculative sales in moderate business, with the market seen staying in a band until release of a government crop report later this week, analysts said.
The New York Board of Trade's key may contract fell 0.79 cent to end at 50.44 cents a lb, dealing from 50.40 to 51.50 cents. The July contract eased 0.72 to 51.75 cents. Except for one contract, the rest retreated 0.49 to 0.80 cent.
Following deals were reported: 344 bales of cotton from Rahimyar Khan at Rs 2300, 300 bales from Sultanabad at Rs 2200 and 200 bales from Shahdadpur finalised at Rs 2150.

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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      2275.00        50                    2325.00

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

40 Kgs         2438.00        50                    2488.00

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