Transaction restricted to single deal at Rs 13,000 in lacklustre trade on cotton market

No major change was seen on the cotton market on Tuesday due to lack of buying interest by the mills, 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 and superior type was also unchanged at Rs 5500, they said. In ready business only 1000 bales of cotton from Mehrab Pur changed hands at Rs 13000, they added.
Some brokers said that buyers were conspicuous by their absence and on the other hand, ginners were not worried over the fall in the daily intake due to falling unsold cotton stock with them. The ginners have about 0.2 million bales of cotton, which is not meeting the emerging needs of the local buyers, they said.
Besides, International Cotton Association (ICA) is holding a conference in Dubai to discuss the concerned matters and their solutions, they said. On Monday the US cotton futures settled the daily limit down, falling for the fourth time in the past five sessions, as uncertainty related to Japan's nuclear crisis triggered a commodity sell-off.
The key May cotton contract on ICE Futures US lost seven cents to finish at $1.9794 per lb, trading from $1.9794 to $2.0683. Last week, the market lost 3.7 percent, the first weekly loss for cotton futures in nine weeks. The Reuters-Jefferies CRB commodity index fell 0.4 percent.

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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 14.03.2011

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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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