Modest trading was seen on the cotton market on Friday as some needy mills took interest in buying to meet the urgent requirements, dealers said. The official spot rate was unchanged at Rs 6,400, while in the ready business, 2,000 bales of cotton changed hand between 5900-6800, dealers said. According to the market sources, main participants were out of the arena to observe fresh developments on both the political and economic fronts.
In the meantime, the ginners were hoping that business activity was improved with the emergence of positive developments in the country, cotton analyst Naseem Usman said. According to the Reuters, the NY cotton futures fell to the lowest level since late January on Thursday, on technically-driven selling, worries over a potential slowdown in top consumer China, and easing supply concerns in the United States, the world's top exporter.
The most-active July cotton contract on ICE Futures US fell 1.64 cents, or two percent, to settle at 81.78 cents per pound. Earlier, the contract dropped as low as 81.52 cents a lb after breaching key technical support and triggering sell stop orders, dealers said.
The December cotton contract saw more limited losses on Thursday, causing its premium over July cotton to spike from 0.97 cent per lb to 1.86 cents a lb, the highest level in a month. ICE December cotton, which represents the new crop, settled down 0.75 cent, or 0.9 percent, at 83.64 cents a lb. The following deals reported: 200 bales from Sanghar at Rs 5,900, same figure from Lodhran at Rs 6,300, 400 bales from 6,500 and 12,000 bales from Rahim Yar Khan at Rs 6,800, dealers 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 23.05.2013
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37.324 Kgs 6,400 155 6,555 6,555 NIL
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Equivalent
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40 Kgs 6,859 155 7,014 7,014 NIL
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