Official spot rate dropped modestly on the cotton market on Friday in the process of subdued business, dealers said. The official spot rate continued weakness, falling Rs 50 to Rs 4850, dealers said. Seed cotton prices in Sindh and Punjab were at Rs 2400-2450, they said. In the ready business, approximately, 1400 bales of cotton changed hands at Rs 4950, they said.
According to the market sources, no significant change was seen on the cotton market in the absence of guiding factor. Cotton analyst, Naseem Usman said that mills and spinners keen to make deals at their psychological levels amid steady phutti arrivals due to favourable weather.
Reuters adds: ICE cotton futures hit their highest levels in 11 months after the release of US export sales figures on Thursday but ended the day lower as speculator buying cooled after sharp gains in recent days, and investors took profits ahead of the long weekend. December cotton on ICE Futures US settled down 0.15 cent on Thursday, a 0.2 percent loss, to 67.39 cents per pound. It traded as high as 68.11 cents a lb, its highest level since July 24, 2014.
US net cotton export sales for the 2014/15 crop year reached 80,500 bales last week, up 22 percent from the prior four-week average, according to US government data. Shipments reached 230,400 bales, down 9 percent from the prior four-week average. Total futures market volume fell 3,007 to 23,916 lots. Data showed total open interest gained 1,352 to 182,435 contracts in the previous session. The following deals reported: 400 bales of cotton form Kotri at Rs 4950, 200 bales from Tando Adam, 400 bales from Shahdadpur and same figure from Sanghar all done at the same rate, dealers 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 02.07.2015
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37.324 Kgs 4,850 150 5,000 5,050 -50
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Equivalent
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40 Kgs 5,198 160 5,358 5,411 -53
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