Slow business was seen on the cotton market on Monday as mills and spinners are still on the sidelines mainly because of less buying interest, dealers said. The official spot rate remained unchanged at Rs 6,400, they said. In the ready business, only one deal of 200 bales of cotton changed hands at Rs 6,250, dealers said.
Market sources said buyers were on the sidelines, hence the ginners failed to sell their unsold stock. They feared that quality may not maintain the level. After the news cotton arrivals in India, up to May 26, were down by 965,000 bales, this factor may increase cotton demand in the near future, cotton analyst Naseem Usman, said.
According to the Reuters, the cotton prices in India are expected to remain rangebound this week due to a pickup in yarn demand, though sowing in some irrigated areas and sales from government reserves are seen capping the gains. Sowing of cotton has begun in irrigated areas of Punjab and Haryana while in non-irrigated areas planting would commence by mid-June, traders said. "So far cotton sowing is good in Punjab and Haryana but major operations would start with the onset of monsoon. At some places cotton may have competition from guar seed," said Manu Mangaldas Shah, a trader from Ahmedabad, Gujarat.
===========================================================================
The KCA Official Spot Rate for Local Dealings in Pak Rupees
---------------------------------------------------------------------------
FOR BASE GRADE 3 STAPLE LENGTH 1-1/32"
---------------------------------------------------------------------------
MICRONAIRE VALUE BETWEEN 3.8 TO 4.9 NCL
===========================================================================
Rate Ex-Gin Upcountry Spot Rate Spot Rate Difference
For Price Ex-Karachi Ex. KHI. As Ex-Karachi
on 25.05.2013
===========================================================================
37.324 Kgs 6,400 155 6,555 6,555 NIL
---------------------------------------------------------------------------
Equivalent
---------------------------------------------------------------------------
40 Kgs 6,859 155 7,014 7,014 NIL
===========================================================================
Comments
Comments are closed.