Wait and see mood prevailed on the cotton market on Monday as mills and spinners kept to the sideline on expectations of fall in the prices, dealers said. Karachi Cotton Association (KCA) official spot rate was unmoved at Rs 12,700, they said. In Sindh and Punjab, phutti price of low type was at Rs 4500 but superior type came down sharply by Rs 500 to Rs 5500, they said.
In ready business only 400 bales of cotton from Bahawal Nagar changed hands at Rs 13000, they added. Market sources said that mills were facing uncertainty due to higher rates and no surety of any future deal in the coming days. There are so many factors behind the lacklustre business analysts said. They said that unforeseen uncertainties are keeping the leading buyers to the sideline.
Some other brokers were of the view that decline in the rates may propel the buyers to start purchasing of cotton. According to Reuters' calculation, China imported 184,200 tonnes of cotton in February, down 53 percent from January, an industry website Cncotton (www.cncotton.com) reported on Monday, citing customs data. Last month's imports marked a 17 percent decline from the same period in 2010.
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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"
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MICRONAIRE VALUE BETWEEN 3.8 TO 4.9 NCL
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Rate Ex-Gin Upcountry Spot Rate Spot Rate Difference
For Price Ex-Karachi Ex. KHI. As Ex-Karachi
on 12.03.2011
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37.324 Kgs 12,700 120 12,820 12,820 NIL
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Equivalent
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40 Kgs 13,611 120 13,731 13,731 NIL
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