Lean business activity was seen on the cotton market on Saturday as a result of less buying interest by mills, dealers said. The official spot rate was unchanged at Rs 5,500, dealers said. In Sindh, seed-cotton prices were at Rs 2900-3050, per 40 kg, they said. In ready session, nearly 200 bales of cotton purchased by the Trading Corporation of Pakistan (TCP) at Rs 5885, they said.
Market sources said that a kind of dullness persisted on the cotton market for a long time owing to directionless business. Cotton analyst, Naseem Usman said that only two factories have started operations in Sindh, he further observed that due to slow arrivals of new crop in the market, an increase was seen in the demand for the low quality of old stock. Other brokers said that sowing in Sindh has been completed and cotton cultivated area in Sindh is 10 percent less as compared to last year, while in Punjab sowing is still under way.
Reuters adds: Cotton futures settled lower on Friday after a choppy trading session as the US government raised its forecast for domestic inventories. The US Department of Agriculture (USDA) cut its outlook for global inventories, largely on a decrease in inventories in China, the world's largest consumer. "China selling so much of their cotton is not good for the near-term, but longer term we're drawing the stocks down," said Louis Rose, independent cotton trader and consultant with Risk Analytics in Memphis, Tennessee. The December cotton contract on ICE Futures US settled down 0.23 cent, or 0.35 percent, at 65.07 cents per lb. It traded within a range of 64.84 and 65.91 cents a lb.
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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 10-06-2016
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37.324 kg 5,500 135 5,635 5,635 NIL
Equivalent
40 kgs 5,894 145 6,039 6,039 NIL
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