Some leading ginners refrained from making new deals on expectations of better profits, dealers said on the cotton market on Thursday. The official spot rate was unchanged at Rs 5,200, dealers said. In Sindh, seed cotton prices were at Rs 2000-2200, and in Punjab prices at Rs 2500 and Rs 2900, they said. In the ready business, around 3000 bales of cotton changed hands between Rs 5200-5500, they said.
According to the market sources, trading activity was slow as both the buyers and sellers were on the sidelines due to lack of interest. They said that most of deals were confined to quality cotton.
It was noted that during the last starting sessions of the week, the spinners moved in to replenish their stock, they said.
Reuters adds: Cotton futures rose slightly on Wednesday, touching its highest level in over a week, supported by a weaker dollar and an up tick in overall commodities.
The front-month May contract on ICE Futures US settled up 0.08 cent, or 0.14 percent, at 58.32 cents per lb, after hitting a high of 58.51 cents.
Total futures market volume fell by 3,370 to 18,592 lots. Data showed total open interest fell 1,786 to 212,253 contracts in the previous session.
The following deals finalised: 1200 bales of cotton from Ghotki at Rs 5200, 600 bales from Rajanpur at Rs 5500 and 600 bales from Sadiquabad at the same rate, they said.
===========================================================================
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 16-03-2016
===========================================================================
37.324 kg 5,200 135 5,335 5,335 NIL
Equivalent
40 kgs 5,573 145 5,718 5,718 NIL
===========================================================================