The Trading Corporation of Pakistan (TCP) started purchasing anew on Wednesday to stabilise the rates on the cotton market in the absence of mills demand, dealers said. The TCP is again active in new booking, buying 200 bales from each factory to provide support in the coming days to dwindling prices, they said.
The official spot rate was unchanged at Rs 3250, they said. The phutti prices in both the Punjab and Sindh were at Rs 1500-1600, they added. Market sources said that the mills and spinners were looking not very enthusiastic to enter into new deals in the absence of motivating factors.
World recession has pushed the trade-related people into the dilemma, confusions and keeping them away from the business arena, they said adding how far it will last, it is very difficult for anyone to guess. One factor appeared that the some leading mills were keenly waiting for falling trend in prices of Indian cotton to import to meet the local needs, experts said. On Tuesday, the NY cotton futures vaulted to a strong close on investor short-covering as the market rebounded from Monday's fall to a 3-1/2-month low, brokers said.
The key May cotton contract rose 0.23 cent to finish at 41.72 cents per lb, trading from 41.39 to 42.38 cents. July added 0.16 cent to conclude at 43.07 cents. Volume traded in the May contract was at 6,025 lots at 2:36 pm EST (1936 GMT). One deal was reported from Karachi at Rs 3300 (exporter to mill, dealers said.
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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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37.324 Kgs 3,250.00 100 3,350.00
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Equivalent
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40 Kgs 3,483.00 100 3,583.00
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