The trade activity improved on the cotton market on Wednesday as spinners and mills took interest in fresh buying, dealers said. The official spot rate was unchanged at Rs 6200, dealers said. In Sindh, seed cotton prices were at Rs 2600-3250, they said that in Punjab, phutti rates were at Rs 2800 and Rs 3500, as per 40 kg, they added.
In the ready session, around 12,000 bales of cotton changed hands between Rs 6100-6450, they said. According to market sources, prices halted sharp decline in local market as rates of Indian cotton stabilised following the decision by the Cotton Corporation of India (CCI) to purchase cotton for mills. Besides, cotton analyst, Naseem Usman said locally Department of Plant Protection (DPP) decided to import cotton at Karachi Port instead of Wagah. He said that the ginners who have enough stock of cotton, keeping in anticipation of better profit, now in panic to dispose off as they feel that the spinners will prefer to purchase Indian cotton due to quality factor. Cotton growers and farmers strongly opposing cotton import from India, other brokers said. They observed that cotton trading would remain devoid of activity in the near future because of bank closing and New Year holodays.
Reuters adds: ICE cotton futures edged lower for the second straight session on Tuesday in limited holiday trading, amid a steady dollar. March cotton contract on ICE Futures US settled down 0.13 cent, or 0.19 percent, at 69.74 cents per lb. It traded within a range of 69.52 and 70.24 cents a lb.
The following deals reported: 3000 bales from Bahria City at Rs 6175, 2200 bales from Bahria Road at Rs 6175, 1600 bales from Khairpur at Rs 6185, 1200 bales from Rohri at Rs 6200, 600 bales from Akri at Rs 6350, 400 bales from Hasilpur at Rs 6100, 600 bales from Vehari at Rs 6100, 400 bales from Burewala at Rs 6200, 500 bales from Haroonabad at Rs 6300, 400 bales from Shadan Lund at Rs 6300, 600 bales from Bahawalpur at Rs 6400 and 400 bales from Yazman Mandi at Rs 6450, dealers 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 27-12-2016
===========================================================================
37.324 kg 6,200 135 6,335 6,335 NIL
Equivalent
40 kgs 6,645 145 6,790 6,790 NIL
===========================================================================