No normal business activity was seen on the cotton market on Monday as both buyers and sellers adopted wait-and-see policy owing to tight supply of seedcotton amid post-holiday session, dealers said. Official spot rate was unchanged at Rs 5,800, they said. Not a single deal finalised due to lack of buying interest among leading participants, they said.
Prices of seedcotton (phutti) in Sindh were unchanged at Rs 2200-2550, in Punjab, rates were inert at Rs 2500-2700, they said. According to the market sources, cotton arrivals from the new crop in India, the world's second-largest producer of the fibre, have fallen 29 percent in the current season that began in October, the Cotton Corp of India said on Monday.
commenting on the short fall of crop, cotton analyst, Naseem Usman said that demand is not so high due to world recession and supply position is smooth, so locally we will not see any anxiety, unhappiness or excitement among the cotton traders. How we can assume that local prices to lift from current levels as more than 30 percent textile industry is lying closed in the Punjab due to energy and gas shortage. We have good cotton crop for the current season but not able to make yarn owing to closure of industries, as a result shipment are delayed, which means country may lose huge amount of foreign exchange in days to come, they Arrivals until November 18 fell to 2.26 million bales of 170 kg each, down from 3.2 million bales a year earlier, the state-run procurement agency said in a statement. Not a single deal reported till our going to the Press, they said.
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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 23.11.2012
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37.324 Kgs 5,850 155 6,005 6,005 NIL
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Equivalent
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40 Kgs 6,269 155 6,424 6,424 NIL
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