Subdued business seen on cotton market

Subdued business was seen on the cotton market on Saturday as main participants were not interested in buying due to lack of leads, dealers said. The Karachi Cotton Association (KCA) official spot rate was unchanged at Rs 5450, dealers said.
In the ready business, over 1400 bales of cotton changed hands between Rs 5000-5550. Phutti prices in both the Punjab and Sindh were at Rs 2100-2200, they added. Some brokers said that in the absence of market moving factors, mills were on the sideline to analyse the fresh developments as spinners called off strike.
But, it is very early to see any fresh development because the mills were hoping for more slide in the rates but the ginners were not ready to lower the prices sharply, they said. After the higher trend in the New York cotton market, the ginners are expecting the rates in the local market to go up in the near future, they added.
On Friday, the NY cotton futures finished with small losses on light investor sales as the market again dawdled in a band while looking ahead to a government plantings report at month's end, brokers said. The key May cotton contract eased 0.03 cent to close at 82.18 cents per lb, dealing from 81.62 to 82.83 cents. July cotton shed 0.06 cent to end at 82.98 cents.
New-crop December lost 0.41 cent to finish at 74.74 cents. Volume traded in the May contract was at 6,437 lots at 2:35 pm EDT (1835 GMT). The following deals were reported : 200 bales of cotton from Sultanabad sold at Rs 5000, same figure from the same station at Rs 5400 and 1000 bales (mill to mill) at Rs 5550.

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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     5,450.00      100                   5,550.00

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Equivalent

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40 Kgs         5,841.00      100                   5,941.00

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