Slow but steady pace in cotton trading

Slow but steady pattern was seen on the cotton market as spinners took interest but not in a big way due to persisting rise in the prices, relevant sources said. The official spot rates, however, showed no change at Rs 2275, without upcountry expenses. In the meantime, some mills were seen buying fine quality of cotton at Rs 2350. Ginners offered low type of cotton at Rs 2150-2200.
Market sources said that due to the rising prices, the ginners were on the safe side and planning to enhance prices modestly. This perception has kept the mills away from the markets, they said.
If the trading corporation of Pakistan (TCP) enters the market to sell its stock, the prices might fluctuate slightly, they observed.
It seems that the overall cotton stock figure is not enough to meet the local mills demand, they (spinners) have to import best type of cotton to meet the demand, they said.
Commenting on the recent rains in Rahimyar Khan, Naseem Usman said that it makes no negative impact on the prices of cotton or quality, because harvesting season of cotton has almost been completed.
In the meantime, wheat production, which is almost ready to cut might be affected by the untimely rains. It is also expected that the rains could hurt the dates and mango crops, dealers said.
Commenting on the positive points of the future of textile sector in the country, President Musharraf said that he is looking forward to the local and overseas Pakistanis and foreigners investing in the country and expects positive outcome in the coming days.
He has been talking to the President Bush that Pakistan should be seen as a special case for the maximum market access in the United States by lowering the duties that are imposed on textile exports from Pakistan.
Following deals were reported: 500 bales of cotton from Tandoadam at Rs 2200, 400 bales from Shahdadpur at Rs 2225, 1000 bales from Rohri at Rs 2325, 2000 from uppper Sindh at Rs 2325-2350 and 3000 bales from Bhawalpur at Rs 2350.

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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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