Most of the participants were on the sideline on the cotton market on Thursday due to lack of interest in new deals, dealers said. The official spot rate was unchanged at Rs 6,850, they added. In the ready session, approximately 2000 bales of cotton changed hand between Rs 6150 and Rs 7100, dealers said.
Cotton analyst Naseem Usman said that some needy buyers were active and other major buyers were not interested in deals, particularly ginners, who were supposing significant rise in the rates despite the International Cotton Advisory Committee (ICAC), which appeared recently, depicting cotton trade will decline by eight percent in 2014-15 against the current season, dealers said.
In the meantime, other commodity experts commenting on the next budget, said that the millers were not happy over the rise in gas charges, textile export mark up on refinance decrease from 9.4 percent to 7.5 percent, textile value-added yearly exports rise 10 percent then four percent benefit given to exporters. 3.1 percent import duty and five percent sales tax on raw cotton, may be beneficial for the textile sector. Buying of cotton yarn, not improved as of the major buyer took interest in purchasing of Indian cotton yarn, they said. According to the Pakistan Bureau of Statistic (PBS), exports of cotton yarn declined by 6 percent to 1.569 billion dollars, which is causing high concern among the traders.
Reuters adds: US cotton futures fell on Wednesday, snapping four straight days of gains with their biggest daily drop in a week as prices were pressured by the outlook for more rain in main growing state Texas and concern about upcoming weekly exports data.
The most-active July cotton contract on ICE Futures US settled down 1.33 cent, or 1.5 percent, at 87.36 cents a lb in New York. The decline wiped out more than half of the 2.49 cent gain accumulated by the contract in four previous sessions.
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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 04.06.2014
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37.324 Kgs 6,850 155 7,005 7,005 Nil
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Equivalent
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40 Kgs 7,341 155 7,496 7,496 Nil
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