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Firm outlook was seen on the cotton market on Tuesday as prices maintained the prevailing levels amid low volume, dealers said. The spot rate was unchanged at 2525, without upcountry expenses.
According to the market sources buying interest was lacking on the part of mills as the ginners were not lowering the asking prices. They said that ginners were firm as they were anticipating better earnings from the remaining stock with them.
Some three lac bales of cotton are with the ginners and the Trading Corporation of Pakistan (TCP) have some 70,000 bales of cotton and fetching lucrative rates in its auctions, brokers said.
REUTERS ADDS: the New York Board of Trade July cotton slid 1.17 cents to end at 50.90 cents per lb, trading from 50.86 to 51.81 cents. New benchmark December delivery fell 0.97 to 56.73 cents, trading from 56.70 to 57.40 cents. The rest retreated 0.40 to 1.03 cents.



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The KCA Official Spot Rate for Local Dealings in Pak Rupees
-----------------------------------------------------------
FOR BASE GRADE 3 STAPLE LENGTH 1-1/32"
MICRONAIRE VALUE BETWEEN 3.8 TO 4.9 NCL
===========================================================
Rate Ex-Gin Upcountry Spot Rate Ex-Karachi
for Price Sales Tax @ 15%
===========================================================
37.32 Kgs 2525.00 50 2575.00
Equivalent-------------------------------------------------
40 Kgs 2706.00 50 2756.00
===========================================================

Copyright Business Recorder, 2006

Copyright Reuters, 2006

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