Prices range bound in modest trading on cotton market

Modest trading was seen on the cotton market on Monday and prices remained range bound as political uncertainty kept both the buyers and sellers in grip of apprehensions, dealers said. The Karachi Cotton Association (KCA) official spot rate was unchanged at Rs 3075, dealers said.
In Sindh phutti was at the weekend level at Rs 1550-1650 and in Punjab it also followed the same trend, holding the last level at Rs 1600-1700, dealers said. According to the market sources, the buyers who were in the market, were interest in finalising the deals at the lower rates but the ginners were in tight position as growers were unwilling to sell at reduced rates.
The Pakistan Cotton Ginners Association (PCGA) issued its fortnightly report showong phutti arrival at 4.2 million bales, they said. Now the general trend in the market is slow pace of phutti arrivals. This is one of the main factors in price increase, they said.
Political instability may discourage the buyers and they may wait for the proper time for the new deals, in the meantime, needy buyers will have to remain in the business, they said.
The following deals were finalised : 800 bales of cotton from Shahdadpur sold at Rs 3075 /3100, 600 bales from Tando Adam at Rs 3075 /3100, 800 bales from Rahim Yar Khan at Rs 3200, 600 bales from Ahmedpur East at Rs 3200, 1000 bales from Dera Gazi Khan at Rs 3200, 800 bales from Bahawalpur at Rs 3200, 600 bales Sadiqabad at Rs 3200, 800 bales from Multan at Rs 3200 and 600 bales from Rajanpur at Rs 3200.

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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      3075.00        50                    3125.00

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

40 Kgs         3295.00        50                    3345.00

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