Ginners reluctant to make deals on hopes of further price increase

Ginners with depleted stock not in a hurry to part their ways with their cotton stock in anticipation of getting higher prices, dealers said on the cotton market on Tuesday. The official spot rate held the overnight level at Rs 6,950, they added. In the ready session, over 2000 bales of cotton finalised at Rs 7200 and Rs 7300 (credit), dealers said.
Some experts were of the view that millers want to replenish their stock to meet an expected delay in arrivals of next production. Interesting thing is that prices are on an upward march in the local market, despite rates came down in globe on lack of buying interest from Chinese buyers, cotton analyst, Naseem Usman said.
He attributed the decline in business activity to higher rates owing to shortage of fine type, and he said less supply of gas and electricity and some uncertainties over the government's policies about the textile sector creating unforeseen fears among the cotton traders. Other experts said that slight rise in exports, rising cost of doing business and too much and soon appreciation in exchange rate likely to hurt the exports of textile items.
The New York cotton futures were closed on Monday to Memorial Day holiday. The following deals reported: 543 bales of cotton from Tonsa Sharif finalised at 7200, 662 bales of cotton from Layyah at Rs 7200 (credit) and 1000 bales from Khanpur at Rs 7300 (credit), dealers 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 26.05.2014

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37.324 Kgs        6,950        155        7,105        7,105            NIL

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Equivalent

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40 Kgs            7,448       155         7,603        7,603            NIL

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