A kind of uncertainty prevailed on the cotton market on Wednesday as most of buyers kept on the sidelines ahead of Panamagate case verdict, dealers said. The official spot rate was unchanged at Rs 6750, they said. In ready session, not a single deal finalised till our going to the press, they said. According to the market sources, speculations over the date and time of the Panamagate case verdict forced mills and ginners to adopt wait-and-see mood.
Cotton analyst, Naseem Usman said that besides, limited stock held by the ginners and delay in arrivals of new cotton crop, propelled sellers not to oblige buyers, instead kept on the sidelines to sell their stock at their psychological levels in the coming days, so that they would be able to earn better profit. According to reports, trading was lacklustre partly because of slow demand for yarn in the international markets. Naseem Usman said that the ginners were reluctant in selling in anticipation of higher profit. In addition, he said that early sowing in Punjab has started and in Sindh sowing is also in full swing after easy supply of irrigation water.
Reuters adds: ICE cotton futures extended their decline on Tuesday and dropped to the lowest in nearly 10-weeks as index funds and speculators rolled their positions ahead of the first notice day for the May contract due in three weeks. The May cotton contract on ICE Futures US settled 0.82 percent lower at 74.85 cents per lb, after touching the lowest since January 26 at 74.55 cents earlier.
===========================================================================
The KCA Official Spot Rate for Local Dealings in Pakistan Rupees
---------------------------------------------------------------------------
FOR BASE GRADE 3 STAPLE LENGTH 1-1/16"
---------------------------------------------------------------------------
MICRONAIRE VALUE BETWEEN 3.8 TO 4.9 NCL
===========================================================================
Rate Ex-Gin Upcountry Spot Rate Spot Rate Difference
For Price Ex-Karachi Ex. KHI. As Ex-Karachi
on 04-04-2017
===========================================================================
37.324 kg 6,750 135 6,885 6,885 Nil
Equivalent
40 kgs 7,234 145 7,379 7,379 Nil
===========================================================================
Comments
Comments are closed.