Mills and spinners remained on the sidelines on the cotton market on Thursday ahead of the Trading Corporation of Pakistan (TCP) announcement of tender result, dealers said. The official spot rate held its overnight level at Rs 2225, without upcountry expenses. Some dealers said that the ginners were looking a little bit active to sell their unsold stock onThin activity seen on cotton market better rate. According to a report, the cotton sowing has completed in lower Sindh while in the upper Sindh the sowing is under progress and likely to be completed in June.
Some traders said that under the circumstances, it seems that the TCP might face difficult task to earn better profit in its next auctions as the NY cotton futures continued lower trend in the world markets.
Commenting on the next direction of the market, cotton analysts said that the lint prices were likely to fall further from current levels.
According to the Reuters, some traders said that the cotton futures ended mixed on Wednesday as speculative short-covering lifted prices from three-month lows and the market rebounded from a technically oversold condition.
The New York Board of Trade's July contract eased 0.05 cent to settle at 48.59 cents a lb., dealing between 47.65 and 48.70. New-crop December gained 0.47 to 52.09 cents, while back month contracts gained 0.25 to 0.47 cent.
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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 2225.00 50 2275.00
Equivalent-------------------------------------------------
40 Kgs 2385.00 50 2435.00
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