Insipid business was seen in the cotton market on Wednesday as a few buyers were in the market but not looking in a hurry for fresh deals due to satisfactory position on the supply side, dealers said.
The official spot rate was unchanged at Rs 2425, without upcountry expenses. Cotton prices remained under pressure in both Sindh and Punjab due to lack of buying interest.
According to the market sources a bunch of factors pushed the buyers away from the market. Negative signals from the New York markets and entry of the Trading Corporation of Pakistan (TCP) in the market eased the price pressure, additionally, buyers have already cotton stock to meet the urgent need.
The TCP has accepted the bids for 50,200 bales of cotton by the mills and exporters and the TCP's next tender is expected within two-three days, they said.
ACCORDING TO THE REUTERS: the New York Board of Trade's May cotton contract shed 0.30 cent to settle at 53.21 cents a lb, moving from 53.17 to 53.60 cents. July fell 0.25 to 54.52 cents. One contract aside, the rest lost 0.40 to 0.45 cent.
Keith Brown, president of commodity firm Keith Brown and Co in Moultrie, Georgia said on technical grounds, a fall in the May contract to below 53.10 cents meant it could slide further to 52.10 cents in the coming sessions.
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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 2425.00 50 2475.00
Equivalent-------------------------------------------------
40 Kgs 2599.00 50 2649.00
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