Firmness prevailed on the cotton market on Thursday as mills were sidelined to observe the development after abolition of five percent duty on imports of cotton yarn, dealers said. The official spot rate was unchanged at Rs 4,375 ahead of holiday on Friday, they said.
In the ready business approximately 8,000 bales of cotton changed hands between Rs 4300-4500. Phutti prices in Sindh and Punjab were at Rs 1800-2250, they added. Commenting on the removal of duty on the import of cotton yarn, leading analyst and Chairman of Karachi Cotton Brokers Association Naseem Usman said that there is mixed reaction by the cotton circle.
Some other brokers said the move by the government would effect the present trend in the market, export of yarn should continue to earn foreign exchange reserves, they added. On Wednesday the NY cotton futures finished with small gains in two-way business as players slipped away for the year-end holidays, with dealings seen staying slim the rest of 2009, brokers said.
The cotton market will close early on Thursday and be shut for Christmas. The market's reopening on Monday will be delayed. Trading in cotton is again shut next Friday, January. 1. The benchmark March cotton contract added 0.10 cent to close at 73.90 cents per lb, dealing between 73.35 and 74.06 cents. Volume traded in the March contract hit a meager 4,975 lots at 2:37 pm EST (1937 GMT).
THE FOLLOWING DEALS WERE REPORTED: 1000 bales of cotton from Shahdadpur sold at Rs 4400, 200 bales from Hala at Rs 4400, 200 bales from Mirpurkhas at Rs 4300, 600 bales from Sanghar at Rs 4400, 2000 bales from upper Sindh at Rs 4500, 800 bales from upper Sindh at Rs 4600 on credit for 15 January payment, 400 bales from Rahim Yar Khan at Rs 4500, 400 bales from Sadiqabad at Rs 4500 and 400 bales from MuridwWala at Rs 4450.
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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 4,375.00 100 4,475.00
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Equivalent
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40 Kgs 4,689.00 100 4,789.00
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