Strong buying by mills and spinners remained restricted on dearth of market moving factors, dealers said on the cotton market on Tuesday. The official spot rate was unchanged at Rs 4,950, dealers said. In the ready session, nearly 10,000 bales of cotton changed hands between Rs 4450 and Rs 5200, they said.
The seed cotton in Sindh was available at Rs 1800 and Rs 2400, in Punjab rates were at Rs 1800 and Rs 2800, they said. According to some analysts, mills and spinners finalising deals of best quality in expectations of revival of activities. Cotton analyst, Naseem Usman said that local exporters and mills were expecting to attend Heimtextil, the world biggest trade fair for the textile. They were hoping to get better response from the European Union countries.
ICE cotton fell the most in 1-1/2 weeks on Monday on expectations of higher Indian exports and on a boost to the US government's forecast of world supplies amid weakening demand in top consumer China and higher US production. The most-active front-month March cotton contract on ICE Futures US fell 1.03 cents, or 1.7 percent, to settle at 59.73 cents a lb, its largest single-session decline since December 31.
The following deals reported: 400 bales from Mirpurkhas at Rs 4450 (condition) same figure from Sanghar at Rs 4050, 600 bales from Burewala at Rs 4900, 600 bales from Yazman Mandi at Rs 4900-5100, 800 bales from Haroonabad at Rs 5000, 400 bales from Fort Abbas, same number from Mlultan, 600 bales from Shujaabad all done at the same rate, 800 bales from Liaquatpur at Rs 5125, 1000 bales from Sadiquabad at Rs 5100-5125, 1200 bales from Layyah at Rs 5150, 1600 bales from Rahim Yar Khan at Rs 5150-5200 and 400 bales from Mianwali at Rs 5200, they added.
===========================================================================
The KCA Official Spot Rate for Local Dealings in Pakistan Rupees
---------------------------------------------------------------------------
FOR BASE GRADE 3 STAPLE LENGTH 1-1/32"
---------------------------------------------------------------------------
MICRONAIRE VALUE BETWEEN 3.8 TO 4.9 NCL
===========================================================================
Rate Ex-Gin Upcountry Spot Rate Spot Rate Difference
For Price Ex-Karachi Ex. KHI. As Ex-Karachi
on 12.01.2015
===========================================================================
37.324 Kgs 4,950 150 5,100 5,100 NIL
---------------------------------------------------------------------------
Equivalent
---------------------------------------------------------------------------
40 Kgs 5,305 160 5,465 5,465 NIL
===========================================================================