Cotton spot rate lowered by Rs 25 amid low activity

The cotton market saw lean business at the week-end in the absence of strong demand after the PCGA report, dealers said. The official spot rate shed Rs 25 to Rs 2350, without upcountry expenses. Cotton prices in Punjab were at Rs 2375 and Rs 2400.
According to the market sources, some leading buyers were on the sidelines on declining trend in the prices and as they had bought enough to meet the near-term needs.
They said that ginners were facing unfavourable circumstances due to unsold stock and lack of buying interest by the local mills, this factor may push prices lower in the coming days.
In fact, the mills were not ready to compromise on the quality factor and preferring to import cotton on the reasonable rates, they said.
In the local markets, the cotton prices were higher and the quality was also not matching with their demand, they said.
ACCORDING TO THE REUTERS: the New York Board of Trade's key December cotton contract shed 0.33 cent to finish at 49.31 cents a lb., dealing from 49.25 to 49.80 cents. March lost the same amount to 52.63 cents. The rest slipped from 0.05 to 0.55 cent.
FOLLOWING DEAL WERE REPORTED: 1000 bales of cotton from Upper Sindh at Rs 2400, 3000 bales from Rahimyar Khan at the same rate, 400 bales from Muridwala at Rs 2375-2400, same figure from Gojra at the same rate, 1000 bales from Rajanpur at Rs 2400, same figure from Bahawalpur at the same rate, same number from Vehari at Rs 2365-2400 and same number from Jahanian at Rs 2400.

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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      2350.00        50                    2400.00

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

40 Kgs         2518.00        50                    2568.00

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