Trading activity slowed down on the cotton market on Wednesday amid slow phutti arrivals, dealers said. The official spot rate managed to hold overnight level at Rs 5,600, they added. In Sindh, prices of seed cotton were at Rs 2500 and Rs 2550 and in Punjab prices were at Rs 2550 and Rs 2650, they said.
Some brokers said that the ginners were not showing interest in selling of seed cotton due to short supply, particularly after rains, they added. Other analysts said that mills and spinners were busy in purchasing of quality cotton in the meantime, it is most likely the current rains may damage quality of cotton.
Reuters adds: cotton futures dropped the most in a month on Tuesday due to subdued demand, expectations of higher output in key producers, and a climbing dollar. The benchmark December cotton contract on ICE Futures US closed down 1.26 cents, or 1.9 percent, at 65.31 cents a lb.
That was the second-month's biggest daily rout since late July, as trading resumed after being closed for the US Labour Day holiday on Monday. The following deals reported: 1200 bales of cotton from Shahdadpur sold at Rs 5600, 1000 bales from Mirpurkhas at Rs 5600, 1200 bales from Sanghar sold at Rs 5600, 1000 bales from Tando Adam at Rs 5600-5625, 1000 bales from Hyderabad at Rs 5600-5625, 800 bales from Chistian at Rs 5700-5750, 400 bales from Garh Maharaja at Rs 5750, 400 bales from Pir Mehal at Rs 5750, 800 bales from Burewala at Rs 5800 and 200 bales from Duniyapur at Rs 5800, 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 02.09.2014
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37.324 Kgs 5,600 150 5,750 5,750 Nil
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Equivalent
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40 Kgs 6,002 160 6,162 6,162 Nil
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