Modest activity was seen on the cotton market on Wednesday as some buyers showed cautious interest in buying of the new crop, dealers said. The Karachi Cotton Association (KCA) official spot rate was unchanged at Rs 2300, without upcountry expenses.
According to the market sources, due to better cotton production this year also pushed the mills in relaxed mood as they have already bought enough stock to meet the forward requirement.
In the meantime, a few spinners were in the market to purchase from the new crop despite quality being not very good, they said. Old crop was not meeting their psychological levels in term of prices and quality factors, they added.
On the other hand, expectations of good cotton production increased the hopes for falling prices.
ACCORDING TO THE REUTERS: the New York cotton futures were down on speculative trading, dealers said.
The New York Board of Trade's December cotton contract fell 0.11 cent to close at 51.14 cents a lb., its lowest settlement since July 21. Trading ranged between 51.00 and 51.45.
March eased 0.03 to 53.25 cents, while deferred months-finished flat to up 0.05 cent. Dealers noted the market's inability to breach support at 51.00 cents looked somewhat supportive.
Following deals were reported; they were some 200 bales of cotton from Sadiqabad at Rs 2375, same figure from Mirpurkhas at Rs 2365 and equal number from Sanghar 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 2300.00 50 2350.00
Equivalent-------------------------------------------------
40 Kgs 2465.00 50 2515.00
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