Low business was seen on the cotton market on Wednesday as both buyers and sellers indulged in a tug-of-war over prices on the eve of Eid-e-Milad-un-Nabi (s a w) holidays, dealers said. The Karachi Cotton Association (KCA) official spot rate was unchanged at Rs 3300, while phutti (seed-cotton) prices in both Sindh and Punjab were same at Rs 1200-1600, they said.
In ready, trading was seen at rates ranging from Rs 3300 to Rs 3450 per maund, market men said. Some brokers said that spinners were in the market for purchasing but kept on the sidelines on observing that the ginners were not ready to lower the asking prices.
According to the market sources, the country may import nearly 4 million bales cotton from different countries including India. For this, the country may have to pay some Rs 55 billion from the country's forex reserves. They said tat during last two weeks, the importers struck deals with Indian suppliers to import nearly 20,000 bales cotton at 74-76 cents per pound.
New York cotton futures continued downward trend and it seemed that they might move both ways in the coming days. Following deals were seen: 1800 bales from Upper Sindh at Rs 3400-3450, 800 bales from Shujabad at Rs 3350, and 400 bales from D G Khan at Rs 3300 per pound.
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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 3300.00 50 3350.00
Equivalent-------------------------------------------------
40 Kgs 3537.00 50 3587.00
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