Trading activity improved marginally on the cotton market on Wednesday amid persistent demand by mills and spinners amid short supply of lint cotton, dealers said. The official spot rate was unchanged at Rs 5500, dealers said. In the ready session, over 3000 bales changed hands between Rs 4000-5600, they said. Seed cotton rates in Sindh were unchanged at Rs 2000-2600 and in Punjab prices registered at Rs 2400-3100, they said.
Some experts said that target for cotton crop may be achieved due to favourable weather in the country, rains in Punjab will help to get the desired result. Cotton analyst, Naseem Usman said that prices are down in the international market due to strong supply position but locally, situation is different because of shortage of lint cotton.
Market sources said that the whole textile industry is confused over the issue of the imposition of Gas Infrastructure Development Cess (GIDC), because, according to the traders this will increase the cost of doing business.
Reuters adds: ICE cotton futures fell for the second straight day on Tuesday, hitting a 3-1/2-week low as a stronger dollar prompted speculators to sell the July contract, with concerns about the next US crop providing some support to the December contract. July cotton on ICE Futures US settled down by 0.57 cent on Tuesday, a 0.9 percent loss, at 64.35 cents per pound, after falling as low as 64.05 cents a lb, the lowest level for the front-month since April 23.
The following deals reported: 820 bales of cotton from Shahdadpur at Rs 4000-4100, 1250 bales from Mian Chano at Rs 5050, 400 bales from Ahmedpur at Rs 5275, 200 bales from Shair Sultan at Rs 5600, 400 bales from Alipur at the same rate, 200 bales from Muridwala at Rs 5600 (delivery on 10th July 2015) and same figure from Toba Tek Singh at the same price (delivery on 10th July 2015), they said.
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The KCA Official Spot Rate for Local Dealings in Pakistan 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 19.05.2015
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37.324 Kgs 5,500 150 5,650 5,650 NIL
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Equivalent
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40 Kgs 5,894 160 6,054 6,054 NIL
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