Cotton prices dropped modestly on the local market on Tuesday in the process of trading, dealers said. The official spot rate was lower by Rs 50 to Rs 6250, dealers said. In Sindh, seed cotton prices were at Rs 2600-3250, they said that in Punjab, phutti rates were at Rs 2800 and Rs 3500, as per 40 kg, they added. In the ready session, over 12,000 bales of cotton changed hands between Rs 5900-6550, they said.
Market sources said that conditional import of cotton from India and declining trend in the global market, particularly in China forced buyers to keep on the sidelines. Cotton analyst, Naseem Usman said that Pakistan has booked nearly 70,000 bales of cotton from India. Reports showed that the country has harvested 10.147 million bales of cotton upto December 15, dimming hopes of a better cotton harvest during the current year.
Other experts said that activity has declined owing to short supply of quality cotton. The spinners still need substantial quantity of cotton they were disappointed due to short supply of lint cotton. According to some analysts, Department of Plant Protection (DPP) has allowed the release of Indian cotton at the Karachi Port.
Adds Reuters: ICE cotton futures tumbled more than 2 percent on Monday, touching the lowest level since November 15 as investors liquidated long positions.
The March cotton contract on ICE Futures US hit a session low of 69.53 cents per lb, a bottom since November 15, while recording its biggest daily percentage fall since October 31.
The following deals reported: 600 bales from Sanghar at Rs 5900/6250, 500 bales from Shahpur Chakar at Rs 6225, 2000 bales from Salehpat at Rs 6300/6360, 1600 bales from Rohri at Rs 6300, 600 bales from Tonsa Sharif at Rs 6050, 1600 bales from Chistian at Rs 6100, 2600 bales from Mianwali at Rs 6100, 800 bales from Layyah at Rs 6100, 800 bales from Hasilpur at Rs 6300, 600 bales from Ahmedpur at Rs 6450, 1400 bales from Muridwala at Rs 6475 and 600 bales from Multan at Rs 6550, 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 19-12-2016
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37.324 kg 6,250 135 6,385 6,435 - 50
Equivalent
40 kgs 6,698 145 6,843 6,897 - 54
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