Higher rates forced the buyers to the sidelines on the local cotton market on Friday, dealers said. The Karachi Cotton Association (KCA) official spot rate was unmoved at Rs 4,600, dealers said. In the ready business, some 2600 bales of cotton changed hands between Rs 4525-4750. Phutti prices in both the Punjab and Sindh were same at Rs 2050-2350, they added.
Commenting on the good production this season, some analysts said that despite this it is unlikely to increase the foreign exchange earning significantly because as a result of gas load management programme. This factor has forced the textile industry to close for 35 days, losing 70 billion rupees, they said. The ginners were not bringing down the prices in hope of more incrase in the prices, they said.
The mills, on the other hand, were not taking interest in fresh deals on expectations of decline in the prevailing rates, they said. Explaining the subdued business these days, they said that the mills adopted the wait-and-see attitude ahead of the Pakistan Cotton Ginners Association (PCGA) fortnightly report. In addition, Federal Textile minister, Rana Farouq in a meeting with the textile stakeholders on Friday said that the mater is under process to purchase Bt quality seed from an American company.
Besides, the minister also said the plan is under way to start hedge trading in the near future. To make up the shortage of cotton in the country, nearly 250,000 bales would be imported within 15 days, analysts said. On Thursday the NY cotton futures finished fractionally lower as the market was weighed down by weak outside markets, which acted as a brake on any gains in fiber contracts, brokers said.
The key March cotton contract shed 0.09 cent to finish at 69.14 cents per lb, dealing from 68.83 to 69.83 cents. It was the lowest level for cotton on the spot daily charts since November. 19. Volume traded in the March contract hit 12,011 lots at 2:33 pm EST (1933 GMT).
The following deals were reported: 200 bales of cotton from Mirpurkhas sold at Rs 4525, 400 bales from upper Sindh at Rs 4700, 600 bales from Hasil Pur at Rs 4550, 400 bales from Haroonabad at Rs 4550, and 1000 bales from Khan Pur at Rs 4750.
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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 4,600.00 100 4,700.00
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Equivalent
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40 Kgs 4,930.00 100 5,030.00
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