Firmer trend was seen on the cotton market as the mills remained on the sideline to analyse the present trend after the rains in both Punjab and Sindh, dealers said. The Karachi Cotton Association (KCA) official spot rate was unchanged at Rs 2600, they added.
According to the market sources, under the circumstances were a little disturbed and hoping for a number of incentives in the Textile packages. It is expected the country may face short supply and it might not be able to maintain its production and quality if the government not announced facilities in the packages.
The rains might push the prices up and increased the demand as well, they said. The New York cotton futures turned lower as the New York Board of Trade's open-outcry July cotton contract fell 0.61 cent to conclude at 55.89 cents per lb, moving from 55.30 to 56.20 cents. On Thursday, the contract closed at 56.50 cents in the highest finish for cotton on a spot basis since late February.
The benchmark December cotton contract eased 0.53 cent to end at 60.97 cents, having dealt from 60.35 to 61.30 cents. The back months shed from 0.50 to 0.72 cent.
Intercontinental Exchange's NYBOT electronic cotton market showed the July contract down 0.80 cent to 55.70 cents at 2:31 pm EDT (1831 GMT). No deal was reported till our going to press, dealers 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 2,600.00 50 2,650.00
Equivalent-------------------------------------------------
40 Kgs 2,786.00 50 2,836.00
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