Mills and spinners largely remained on the sidelines on the cotton market on Friday due to higher prices of limited stock of fine quality, dealers said. The official spot rate was unchanged at Rs 5,550 dealers said. In the ready business, around 2700 bales of cotton changed hands between Rs 5500-5525, they said.
Some experts said that it was expected that buying from mills to increase after news that the government is holding back the imports under Import Policy Order 2008, which may resist import of cotton to 500,000 bales. Besides, the country would see short production this year, despite this news, volume of business could not pick up, it was surprising for the cotton trades. The mills are purchasing cotton at the higher rates for quality reason because cotton production is not enough to meet demand, cotton analyst, Naseem Usman said. In the meantime, All Pakistan Textile Mills Association (APTMA) is opposing the ban, other brokers said.
Adds Reuters: Cotton futures sank on Thursday under pressure from a sell-off in other commodities markets, including grains, as the dollar rallied. Cotton contracts for July on ICE Futures US settled down 0.98 cent, or 1.6 percent, at 61.07 cents per lb. They traded within a range of 60.6 and 62.15 cents a lb. The following deals reported: 600 bales from Sakrand at Rs 5500 and 2100 bales from Chundco at Rs 5525, dealers said.
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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 19-05-2016
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37.324 kg 5,550 135 5,685 5,685 NIL
Equivalent
40 kgs 5,948 145 6,093 6,093 NIL
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