In the absence of intervention by the Trading Corporation of Pakistan (TCP), the prices declined further on the cotton market on Wednesday, dealers said. The official spot rate continued overnight weakness, dropped further by Rs 150 to Rs 3000, they said. Phutti prices also fell in Sindh and Punjab at Rs 1400-1500, they added.
Some brokers said that in the absences of Trading Corporation of Pakistan (TCP) in the market to support prices of cotton, the rates are on the slide. As a result of continued fall in the cotton prices, the Pakistan Cotton Ginngers Association (PCGA) threatened to go on countrywide strike if the TCP does not announce support prices, they said.
According to cotton analyst many in the market are of the opinion that the TCP should hurry up or give up the mission. It's high time to act positively as the growers and ginners are seeking early announcement of support price. As a result of sliding trend in the prices, the rate of 1000 bales of cotton from Sultanabad station dropped by Rs 200 to 2700, dealers said.
On Tuesday the NY cotton futures were down as the key December cotton contract declined 2.21 cent or by 5.09 percent to finish at 39.14 cents per lb, dealing from 41.36 to a new lifetime low of 38.45 cents. It was the second day running the contract set a lifetime low.
On the spot charts, one long-time analyst said it was the lowest performance for cotton since around May 2002 when it traded around 31 cents. The March cotton contract lost 2.62 cents to conclude at 42.14 cents. Volume traded in the December contract was at 13,903 lots at 2:39 pm (1939 GMT).
The following deals were reported: 2000 bales of cotton from Mirpurkhas-Sultanabad at Rs 2800-2950, 2000 bales from Shahdadpur at Rs 2900-3025, 600 bales from Tando Adam at Rs 2950-3000, 800 bales from Khipro at Rs 2950-3000, 200 bales from Pithoro at Rs 2850, 400 bales from Khairpur at Rs 2950-3000, 1000 bales from Upper Sindh at Rs 3100, 600 bales from Bhawalnagar at Rs 3000, 200 bales from Multan at Rs 2975, 400 bales from Liaquatpur at Rs 3100-3150, 200 bales from Chistian at Rs 3000, 600 bales from Shah Jamal at Rs 3100, 600 bales from Burewala at Rs 3100, 200 bales from Haroonabad at Rs 3100, 200 bales from Faqirwali at Rs 3100, 400 bales from Arifwala at Rs 3000-3075, 1600 bales from Dera Ghazi Khan at Rs 3100-3125, 400 bales from Uch Sharif at Rs 3175, 200 bales from Vehari at Rs 3000, 800 bales from Ahmadpur at Rs 3075, 200 bales from Tandla at Rs 3025, 400 bales from Garh Mahraja at Rs 3000-3050, 400 bales from Shehr Sultan at Rs 3150, 400 bales from Sadiqabad at Rs 3100, 800 bales from Kabirwala at Rs 3100-3115, 400 bales from Ali Pur at Rs 3050, 200 bales from Qaboola at Rs 3100, 200 bales from Chichawatni at Rs 3025, 200 bales from Mongi Bangla at Rs 3025, 400 bales from Layyah at Rs 3025 and 200 bales from Bhakkar done at Rs 3025, they said.
===========================================================
The KCA Official Spot Rate for Local Dealings in Pak Rupees
-----------------------------------------------------------
FOR BASE GRADE 3 STAPLE LENGTH 1-1/32"
MICRONAIRE VALUE BETWEEN 3.8 TO 4.9 NCL
===========================================================
Rate Ex-Gin Upcountry Spot Rate Ex-Karachi
for Price Sales Tax @ 15%
===========================================================
37.324 Kgs 3,000.00 100 3,100.00
-----------------------------------------------------------
Equivalent
-----------------------------------------------------------
40 Kgs 3,215.00 100 3,315.00
===========================================================