Trading activity came down slightly on the cotton market on Wednesday as a result of unavailability of transport ahead of Eid-ul-fitr holidays, dealers said. The official spot rate stayed put at Rs 3975, they said. Phutti prices in Sindh were unchanged at Rs 1925-1950 and in Punjab also the rates maintained the overnight level at Rs 1850-1950 (per 40 kg), they said.
Commenting on the continued strong demand by the mills during the last sessions, some cotton analysts said that the ginners were receiving several big orders by the mills and exporters. After the rise in the buying, the ginners raised prices of cotton, they added.
The exporters are still interested buyer of cotton as they were hoping that they would be able to sell local cotton to the other countries, they said. The international outlook for the production of cotton is not very flourish or optimistic due to some discouraging reports, they added. Recent rains in some parts of Punjab are also creating fears among the buyers as this factor may cause increase in prices in the coming days, they said.
On Tuesday, the NY cotton futures were lower on investment fund liquidation as weakness in other markets depressed fibre contracts as well, brokers said. The benchmark December cotton contract slumped 2.09 cents to close at 62.30 cents per lb, trading from 62 to 64.25 cents. March dropped 2.26 cents to 66.
THE FOLLOWING DEALS WERE REPORTED: 2000 bales of cotton from Shahdadpur at Rs 4000-4050, 400 bales from Moro at Rs 4025, 1600 bales from Tando Adam at Rs 4000-4050, 1000 bales from Nawabshah at Rs 4025, 800 bales from Hala sold at Rs 4025, 800 bales from Sanghar at Rs 4025, 400 bales from Hyderabad at Rs 4025, 1000 bales from Mirpurkhas at Rs 3975-3990, 400 bales from Sultanabad at Rs 4000, 1000 bales from Chichawatni at Rs 3975-4000, 1200 bales from Hasilpur at Rs 3975-4000, 200 bales from Chistian at Rs 3975, 800 bales from Arifwala at Rs 3975, 1200 bales from Pakpattan at Rs 3975, 400 bales from Gajjo at Rs 3975, 600 bales from Deraghazikhan at Rs 3975, 400 bales from Layyah at Rs 3975, 600 bales from Faqirwala at Rs 3975 and 400 bales from Khanwal at Rs 3995, 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 3,975.00 50 4,075.00
Equivalent-------------------------------------------------
40 Kgs 4,260.00 50 4,360.00
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