Modest trading activity was seen on the cotton market on Saturday as the ginners did not take interest in lower the asking prices, dealers said. The official spot rate was unchanged at Rs 6900, they said. Rates of seed cotton in Sindh were at Rs 2000-2700, while in Punjab at Rs 2000-3100, they said. In the ready business, nearly 7,000 bales of cotton changed hands between Rs 6,400 and Rs 7,100, they said.
The mills showed little interest in fresh buying due to higher rates and partly because of weak economic scenario for the world economy, cotton analyst Naseem Usman said. If demand for yarn comes up by the foreign importers that may help in increasing the rates in days to come, other brokers said. According to the Reuters, ICE cotton posted its largest one-day drop in 2-1/2 weeks on Friday, as weaker-than-expected US government data prompted concern over the health of the world's largest economy and pressured commodities markets.
The most-active May cotton contract on ICE Futures US decreased 1.54 cents, or 1.7 percent, to settle at 86.79 cents per pound, the spot contract's largest one-day drop since March 20. The spot contract fell more than two percent from last week's close to register its fourth weekly loss this year.
The benchmark Thomson Reuters-Jefferies CRB fell for a fifth session to its largest weekly loss since October, and the Dow Jones Industrial Average fell, after US government data showed American employers slowed their hiring pace in March. The following deals were reported: 200 bales from Multan at Rs 6,400, 1,100 bales from Sadiqabad at the same rate, 400 bales from Yazman Mandi at Rs 6,600, 100 bales from Shujabad at the same rate, 400 bales from Mian Chano at Rs 7,000, 2,200 bales from Kabbir Wala at Rs 7,100 and same figure from Rahim Yar Khan at the same price, 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"
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MICRONAIRE VALUE BETWEEN 3.8 TO 4.9 NCL
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Rate Ex-Gin Upcountry Spot Rate Spot Rate Difference
For Price Ex-Karachi Ex. KHI. As Ex-Karachi
on 05.04.2013
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37.324 Kgs 6,900 155 7,055 7,055 NIL
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Equivalent
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40 Kgs 7,395 155 7,550 7,550 NIL
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