Modest trading was seen on the cotton market on Tuesday as ginners were trying to dispose of unsold crop ahead of arrival of new crop, dealers said. The official spot rate was left unchanged at Rs 3400. About 4,000 bales from different stations changed hands at Rs 3450, they said.
Explaining the present trend in the market some brokers said that mills were active in making new deals of fine types as ginners cut the asking prices. But one thing appeared that prices were stable as mills preferred to buy local stuff as rates were matching with their psychological levels, they said.
Continued fall in the NY cotton market, decreased demand and arrival of new crop propelled the ginners to sell the old stock, they said. Other major factor was slow demand by the mills as they are confused over the present situation in the textile sector, they added.
In the meantime, expectations for good cotton production likely to bring pleasant change in the textile items, cotton analysts said. On Monday, the NY cotton futures settled easier on investor liquidation and news of improved weather across the US cotton belt, analysts said.
The July cotton contract lost 1.05 cents to end at 50.51 cents per lb, dealing from 50.15 to 51.80 cents. Volume traded in the July contract was at 3,250 lots at 2:56 pm EDT (1856 GMT). The new-crop December cotton contract fell 0.89 cent to settle at 55.49 cents, moving from 54.77 to 56.65 cents.
THE FOLLOWING DEALS WERE REPORTED: 2600 bales of cotton from Gani wal sold at Rs 3450, 600 bales from same station at the same rate and 400 bales from Sadiqabad at the same rate, they said.
===========================================================
The KCA Official Spot Rate for Local Dealings in Pak Rupees
-----------------------------------------------------------
FOR BASE GRADE 3 STAPLE LENGTH 1-1/32"
MICRONAIRE VALUE BETWEEN 3.8 TO 4.9 NCL
===========================================================
Rate Ex-Gin Upcountry Spot Rate Ex-Karachi
for Price Sales Tax @ 15%
===========================================================
37.324 Kgs 3,400.00 100 3,500.00
-----------------------------------------------------------
Equivalent
-----------------------------------------------------------
40 Kgs 3,644.00 100 3,744.00
===========================================================
Comments
Comments are closed.