Prices showed slight fluctuations on the cotton market on Thursday in the process of subdued trading, dealers said. The official spot rate was unchanged at Rs 4,700, dealers said. In the ready session, around 3,000 bales of cotton changed hands between Rs 4,500 and Rs 4,950, they said. The seed cotton rates in Sindh at Rs 1600 and Rs 2300, in Punjab prices were at Rs 1700 and Rs 2500, they said.
As a whole there was no fresh buying as leading buyers were conspicuous by their absence, analysts said. Cotton analyst, Naseem Usman said that the mills were laying hands over the fine quality, at the same time the ginners were facing financial problem as the Trading Corporation of Pakistan (TCP) is not paying their dues. The TCP purchased cotton from ginners but it did not pay the amount, a huge stock of unsold cotton and financial problem causing high uncertainties among the cotton traders, other experts said.
Reuters adds: ICE cotton gained for the third straight session and hit a 1-1/2 week high on Wednesday as investors covered short positions ahead of a US Federal Reserve statement and a Thursday report expected to show another week of strong export sales. The most-active front-month March cotton contract on ICE Futures US rose 0.66 cent, or 1.1 percent, to settle at 59.44 cents a lb after rising to as much as 59.48 cents a lb, its highest level since January 16.
The following deals reported: 300 bales from Mehrabpur at Rs 4500, 710 bales from Moro at Rs 4600, 200 bales from Layyah at Rs 4650, 400 bales from Mianwali at Rs 4850-4950, same figure from Bahawalpur at Rs 4900 and 1200 bales from Rahim Yar Khan at the same price, they added.
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The KCA Official Spot Rate for Local Dealings in Pakistan 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 28.01.2015
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37.324 Kgs 4,700 150 4,850 4,850 NIL
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Equivalent
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40 Kgs 5,037 160 5,197 5,197 NIL
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