Cautious trading was seen on the cotton market on Friday as both buyers and sellers were on the sidelines ahead of federal budget 2009-10, which is expected on Saturday, dealers said. The official spot rate did not show any change at Rs 3,500; they said. In the ready business over 2,400 bales changed hands from different stations between Rs 3,300-3,450; dealers added.
Some brokers said that buyers and sellers both were conspicuous by their absence as they were expecting courageous measures announced by the government in the budget. Slow down in world economy has hurt the local cotton business as textile is under pressure after significant fall in the exports, analysts said.
Nobody is interested in the fresh deals as mills were expecting several incentives in the budget and it is most likely that they may come back in the market after announcement of packages for the textile sector, they said. On Thursday the NY cotton futures settled higher on investment fund buying inspired in part by a soft dollar and strong outside markets although fiber contracts are still mired in a wide band, brokers said.
The July cotton contract climbed 1.67 cents to close at 56.30 cents per lb, moving between 54.55 and 56.54 cents. Volume traded in the July contract was at 12,284 lots at 2:45 pm EDT (1845 GMT). The new-crop December cotton contract rose 1.91 cents to conclude at 61.26 cents, ranging from 59.24 to 61.40 cents.
THE FOLLOWING DEALS WERE REPORTED: 200 bales of cotton from Shahdadpur sold at Rs 3,300 (new crop) for 20 June delivery, 400 bales from Sahari at Rs 3,450; 1,125 bales from same station at Rs 3,400 and 700 bales from Khipro at the same rate, they 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 3,500.00 100 3,600.00
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Equivalent
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40 Kgs 3,751.00 100 3,851.00
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