Not a single deal reported on the cotton market on Saturday as most of the spinners kept on the sidelines due to continued fall in the New York cotton futures, brokers said. The Karachi Cotton Association (KCA) official spot rate was unchanged at Rs 3350, they said.
Phutti prices in both Sindh and Punjab were unchanged at Rs 1500-1800, they said. Falling trend on the NY cotton market helped the mills to take some breather as this factor may push the rates lower in the local market, they added.
On the other hand, declining rates in the NY market, likely to propel Indian and other cotton exporters to honour their commitments, they added. Weak trend was again witnessed for the second day in the NY cotton market as the ICE Futures' May cotton contract finished 4.00 cents lower at 81.28 cents per lb, a 4.69 percent decline to the daily downside limit.
The session high was 83.55 cents. The May contract began it's steep descent on Thursday from a 12-1/2-year peak at 92.86 cents reached on Wednesday. The new-crop December cotton contract was also stopped at its 4.00-cent downside limit, settling at 87.53.
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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 3350.00 50 3400.00
Equivalent-------------------------------------------------
40 Kgs 3590.00 50 3640.00
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