Little business was seen on the cotton market on Tuesday amid post-holiday session, dealers said. The official spot rate was unchanged at Rs 7,600, they added. Prices of seed cotton in both Sindh and Punjab were available at Rs 3900-4000, they said.
Approximately, 400 bales of new crop cotton from Tando Adam finalised at Rs 8100 and 200 bales from Shahdadpur at the same rate and 400 more bales of cotton from Tando Adam sold at Rs 7900, they said. Cotton analyst Naseem Usman said that leading mills and spinners were conspicuous because they were busy in exchanging Eid-greetings most of the session.
In fact, a kind of dullness was witnessed as both buyers and sellers were surprised at the present trend in the local market, other brokers said. Under the circumstances, it looks that prices may decline in the coming days, they said. Today was the first trading day, after holidays, the participants showed not so much interest in making new deals, they said.
Secondly, sharp fall in the international market was also an adding factor behind the inactive market, they added. Adds Reuters: ICE cotton futures fell over 2 percent on Monday to hit a three-week low, weighed down by trade tensions between the United States and China and rains in West Texas, a major producing region.
The most active cotton contract on ICE Futures US, the third-month December contract, settled down 2.08 cent, or 2.31 percent, at 87.77 cents per lb. The contract traded within a range of 87.1, the lowest since May 29, and 89.52 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 1-1/16"
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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 Ex-Karachi Ex. KHI. As Ex-Karachi
on 14-06-2018
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37.324 kg 7,600 145 7,745 7,745 NIL
Equivalent
40 kgs 8,145 155 8,300 8,300 NIL
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