A kind of dullness prevailed on the cotton market on Saturday as the mills showed less interest in new deals, dealers said. The official spot rate was unmoved at Rs 6700, they said. In ready session, not a single deal finalised due to less interest for fresh buying, they said. According to the market sources, under the circumstances, when the textile industry is facing crisis like situation, the government is mulling to levy import duty on cotton.
They said the ginners were seeking government's concession to get out of present situation. But now, it's appeared that cotton growers and traders would face tough time in the days ahead, they said. Other brokers said that the ginners believe some delay in arrival of new crop and shortage of cotton can lead to higher prices in the coming days.
Cotton analyst, Naseem Usman said that the ginners seeking government's support in shape of reduction in taxes on power consumed by the ginning units. He also said spinners seem to be waiting for the next crop which is late owing to delay in sowing caused by recent heat wave in the country. The global leading cotton markets also observing the subdued business, including the New York market, they said.
Reuters adds: ICE cotton futures gained 1 percent on Friday to recover partially from the previous session's decline, on speculative buying and short-covering, but they were down for the week. The July cotton contract on ICE Futures US settled up 1.17 percent at 78.87 cents per lb, after falling nearly 2 percent in the previous session.
The contract was down about 0.6 percent for the week after two consecutive weekly gains. The July cotton contract on ICE Futures US settled up 0.91 cent, or 1.17 percent, at 78.87 cents per lb. It traded within a range of 77.65 and 78.97 cents a lb. Total futures market volume rose by 2,877 to 24,094 lots. Data showed total open interest gained 440 to 253,351 contracts in the previous session.
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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 1-1/16"
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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 Expenses Ex-Karachi Ex. KHI, As Ex-Karachi
on 28-04-2017 in Rupees
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37.324 kg 6,700 135 6,835 6,835 Nil
Equivalent
40 kgs 7,180 145 7,325 7,325 Nil
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