Falling trend was again witnessed on the cotton market on Friday as many participants were conspicuous by their absence, dealers said. The official spot rate was lowered by Rs 50 more at Rs 3200, they said. The phutti prices in Sindh were unchanged at Rs 1550-1650 and in Punjab prices were at Rs 1450-1550, (per 40 kg), they said.
Some brokers said that no change was seen in the present economic outlook, which discouraged the mills and spinners. The ginners cutting the prices down to dispose off all unsold stock but mills were not able to oblige them due to continued uncertainties, they added.
The adding factor behind the lacklustre activity is, in fact downward trend in the NY cotton market, depicting no sign of any pleasant change, they said. On Thursday the NY cotton futures settled lower on investor sales as fears of a global recession were reasserted and analysts feel the market will struggle to make headway toward higher ground.
The key December cotton contract lost 1.34 cents to close at 49.08 cents per lb, dealing from 48.81 to 50.75 cents. It was an inside day since the range was within Wednesday's 48.75-50.94 band. March eased 0.19 cent to 53.32 cents. Volume traded in the December contract stood at 13,622 lots at 2:44 pm (1844 GMT).
The following deals were reported: 2000 bales of cotton from Shadapur sold at Rs 3100-3150, 2000 bales from Mirpurkhas at Rs 3050-3150, 1000 bales from Sanghar 3100-3150, 800 bales from Tando Adam at Rs 3100-3150, 600 bales from Khipro at Rs 3125-3150, 400 bales from Shahpur Chakar at Rs 3150, 1000 bales from Khanpur at Rs 3100-3150, 1000 bales from Rahim Yar Khan at Rs 3200-3250, 600 bales from Liquat Pur at Rs 3200-3250, 800 bales from Khanewal at Rs 3200-3250, 400 bales from Chichawatni at Rs 3200, 600 bales from Haroonabad at Rs 3150-3200, 400 bales from Arifwala at Rs 3150-3200, 400 bales from Sadiqabad at Rs 3150 and 1000 bales from Burewala at Rs 3150-3200, 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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37.324 Kgs 3,200.00 100 3,300.00
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Equivalent
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40 Kgs 3,429.00 100 3,529.00
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