Modest decline was seen in the cotton prices on Thursday as phutti arrivals were satisfactory, dealers said. The Karachi Cotton Association (KCA) official spot rate was down by Rs 15 to Rs 2460, without upcountry expenses.
Fresh decline in the prices were indicating that prices may fall further in coming days following the steady arrivals of phutti, they said. Now, it looks that the market will move on the demand and supply factors. The mills taking advantage of falling trend in the prices and making forward deals to decrease their financial burden, they added.
The ginners were trying to offload the unsold cotton as early as possible. They feel that against the last year, good cotton crop in Punjab attract the spinners to purchase the fine cotton, brokers said.
So, they lowered the asking prices ranging between Rs 10-25. If the cotton arrivals go smoothly, they may not hesitant in lowering the prices to avoid big losses, they said.
Cotton from Punjab fetches better rates as compared to the Sindh due to quality factor, they added. But, according to the Pakistan Cotton Ginners Association (PCGA) report, cotton crop in Sindh is less than the last year and this factor might help in minimising the fall in the rates, they said.
Some dealers were of the opinion that the leading factor behind the falling trend in the prices is the downward trend in the NY cotton market, which is mainly travelling into the negative territory for the last several weeks. .
Reuters adds: the New York Board of Trade's December cotton contract was last done at 50 cents per lb, up 0.63 cent on the day while dealing from 49.85 to 50.10 cents.
The final settlement price was not immediately available, although floor sources said the contract ended at 50.16 cents. The March was seen last at 53.40 cents, up 0.40 cent on the day. Traders said it finished at 53.58 cents.
THE FOLLOWING DEALS WERE REPORTED: 400 bales of cotton from Mirpurkhas sold at Rs 2450, 200 bales from Sultanabad at the same rate, 4000 bales from Shahdadpur at Rs 2450-2470, 1000 bales from Tando Adam at Rs 24250-2450, 800 bales from Bahawalpur at Rs 2525, 1000 bales from Vehari at Rs 2490-2500, same figure from Kassowal at Rs 2500, 200 bales from Tandla at the same rate, 200 bales from Mamo Kanjan at the same rate, 1000 bales from Hasilpur at Rs 2515-2525, 200 bales from Mubarikpur at Rs 2480, 200 from Ahmed pur East at Rs 2490, 600 bales from Hyderabad at Rs 2490-2515, 200 bales from Gojra at Rs 2500, 400 bales from Jahanian at Rs 2525, 200 bales from Alipur at Rs 2540, same figure from Gajjo at Rs 2535, same number from Bahawalnagar at Rs 2490 and 400 bales from Rajanpur at Rs 2525.
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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 2460.00 50 2510.00
Equivalent-------------------------------------------------
40 Kgs 2636.00 50 2686.00
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