The volume of business improved on the cotton market on Tuesday despite lack of buying interest, dealers said. The official spot rate was unmoved at Rs 6700, dealers said. In Sindh, seed cotton prices were at Rs 3200-3500, they said. In Punjab, phutti rates were at Rs 3300 and Rs 3800, as per 40 kg, they added.
In the ready session, over 4,000 bales of cotton changed hands between Rs 6450 and Rs 6925, they said. According to market sources, trading activity improved but undertone is still uncertain as most of the leading buyers kept on the sideline due to lack of buying interest.
Sharing the same views, cotton analyst, Naseem Usman attributed the constant slow demand to import of cotton from different countries. Huge gap between consumption and production propelling spinners to look other markets to meet their demand, analysts said.
Besides, some experts said that a spell of cold and rains in different parts of country caused severe restricted arrivals of Phutti (seed cotton). But now the situation may improve with the passage of time and arrivals of seed cotton would also increase, as well, they said.
Adds Reuter: Cotton futures slipped one percent on Monday on speculator activity ahead of the first notice day for the March contract, due later in the month, amid a firmer dollar.
The March cotton contract on ICE Futures US settled down 0.78 cent, or 1 percent, the biggest one-day percentage drop since January 24, at 75.63 cents per lb. It traded within a range of 75.56 and 76.50 cents a lb. The following deals reported: 400 bales from Bakhar at Rs 6450, 200 bales from Mianwali at Rs 6800, 2400 bales from Kabirwala at Rs 6900, 400 bales from Rahim Yar Khan at Rs 6900, 600 bales from Hasilpur at Rs 6900/6925, 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 1-1/16"
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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 Expenses Ex-Karachi Ex. KHI, As Ex-Karachi
on 06-02-2017 in Rupees
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37.324 kg 6,700 135 6,835 6,835 NIL
Equivalent
40 kgs 7,180 145 7,325 7,325 NIL
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