Slow business was again seen on the cotton market on Tuesday as leading participants felt there was no visible change on the economic side despite an apparent settlement of judges issues, dealers said. The official spot rate was down by Rs 50 to Rs 3150, they said.
The phutti prices in both the Punjab and Sindh were at Rs 1500-1600, they added. Market sources said that no big change was seen as they hoped because mills have no future plan after the news that textile exporters are facing huge losses.
No one is ready to take position in the short-term as several negative factors hovering around on weak economic scenario and world recessions. As a matter of fact economic activity will revive locally if the world economy depicts any improvement in the short-run, they added.
On the one hand, the new sowing started and on the other hand, unsold stocks are lying in the absence of proper demand by the mills and spinners, causing a big loss to the ginners, they observed. On Monday, the NY cotton futures settled higher on modest investor buying inspired by a firmer stock market as the trade awaited the release of a key crop report at months end, brokers said.
The key May cotton contract gained 0.22 cent to end at 43.05 cents per lb, trading from 42.76 to 43.57 cents. July added 0.09 cent to 43.95 cents. Volume traded in the May contract amounted to 7,381 lots at 2:34 pm EDT (1834 GMT). A solo deal was reported as 200 bales of cotton from Setharja sold at Rs 3050, 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 3,150.00 100 3,250.00
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Equivalent
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40 Kgs 3,376.00 100 3,476.00
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