Sluggish cotton market lacks motivating factors

Leading buyers were on sidelines on the cotton market on Monday in the absence of fresh news on the textile sector and ahead of the final arrival figure by the Pakistan Cotton Ginners Association (PCGA), dealers said.
The Karachi Cotton Association (KCA) official spot rate was inert at Rs 2700, without upcountry expenses. No deal was reported both from the Punjab and Sindh stations, they said.
In fact, the main factor behind the sluggish business was mills' lack of buying interest as they have covered their forward requirements, they said. Under the circumstance the ginners also changed their strategies and started exporting to the foreign countries, they said. Falling trend in the New York cotton market, compelled them to think about the present line of action.
Cotton analysts said that any package for textile can revive the normal activity. They said that the PCGA report on arrival figure, which is likely this week, may help in setting the future market direction.

===========================================================

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      2700.00        50                    2750.00

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

40 Kgs         2894.00        50                    2944.00

===========================================================