Activity fails to pick up the pace on the cotton market on Saturday as the leading participants remained on the sidelines in the absence of proper delivery system, dealers said. The official spot rate was unchanged at Rs 2450, without upcountry expenses.
Some brokers said that the heavy downpour may hit the standing cotton production and quality. But, they said that it is early to say that how much the rains are affecting quantity or quality.
Suspension of cotton picking operations and ginning kept the main participants away from the markets. It is expected that the normal business activity may start from the next week, they said.
Commenting on the bad impact of the heavy rains and floods in some areas in the country, Naseem Usman said that approximately 8-10 lakh bales of cotton may be hit by the rains and the clear-cut situation will emerge in September.
Continued fall in the New York cotton futures is a factor, which should be considered, but in the absence of proper trading in the local market, it is difficult to explain that how the trend is being influenced.
The New York Board of Trade's December cotton contract lost 0.34 cent to end at 54.52 cents per lb, after moving in a 55.05-54.50 cent band. March slipped 0.24 cent to close at 57.96. Other forward contracts slid 0.20 to 0.34 cent.
A solo lot of 200 bales of cotton from Mirpurkhas was sold at Rs 2460, they said.
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The KCA Official Spot Rate for Local Dealings in Pak Rupees
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FOR BASE GRADE 3 STAPLE LENGTH 1-1/32"
MICRONAIRE VALUE BETWEEN 3.8 TO 4.9 NCL
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Rate Ex-Gin Upcountry Spot Rate Ex-Karachi
for Price Sales Tax @ 15%
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37.32 Kgs 2450.00 50 2500.00
Equivalent-------------------------------------------------
40 Kgs 2626.00 50 2676.00
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