Wait-and-see mood prevailed on the cotton market on Monday as both buyers and sellers opted for sideline due to rising uncertainties following the issue of ceiling on exports of cotton yarn, dealers said. The Karachi Cotton Association (KCA) official spot rate was unchanged at Rs 5550, they said.
In the ready business activity came down as over 2000 bales of cotton changed hands, ranging between Rs 5200-5600. Phutti prices in both the Punjab and Sindh were at Rs 2300-2400, they added. Market sources said despite the fact that the ginners, who were watching the developments keenly, lowered the prices to dispose of old stock but the mills did not show interest in the fresh buying.
Some other brokers said that the ginners and mills were a little bit confused over the lingering problem about the yarn export ceiling because mills said they would force textile ministry to withdraw its decision to put quantitative ban on yarn export.
Besides, both buyers and sellers have no idea about the future direction of market, because fluctuations in prices both in the local and international market caused jitters among the concerned circle, some analysts said. The following deals were reported : 1000 bales of cotton (mill to mill) sold at Rs 5600, 200 bales from Chistian at Rs 5200 and 1048 bales from Ghotki sold at Rs 5475.
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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 5,550.00 100 5,650.00
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Equivalent
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40 Kgs 5,948.00 100 6,048.00
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