Firmness prevailed in the cotton market on Monday as both exporters and mills throng the Trading Corporation of Pakistan (TCP) to grab every offer at the auction by the corporation, dealers said. The official spot was at Rs 2600, without upcountry expenses.
According to the market sources, approximately, the TCP received 111,000 bids against the 33,000 bales of cotton. The mills highest bid was at Rs 2570 and lowest rate was at Rs 2351. The exporters also took part in the sale. Both the parties were bidding against the 33,000 bales of cotton and according to an estimation, the TCP has now 35,000 bales of cotton to dispose off.
Brokers said that these days some exporters were active in selling the cotton to the mills, mainly because of enough stock with them for the export purpose and better return.
Since the New York cotton futures started depicting easier trend, the exporters willingly preferring to dispose off some lot to the mills, at a time when they are not on the losing side.
It is interesting to note that the under the circumstances the ginners may be loser if they failed to sell their unsold stock with them, some cotton analysts observed.
A few of them were of the view that delay in the new crop was a factor, which might help in stabilising the prices in the near future. No deal was reported from any station of the country.
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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 2600.00 50 2650.00
Equivalent-------------------------------------------------
40 Kgs 2786.00 50 2836.00
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