Leading participants were on the sidelines on the cotton market on Saturday in absence of motivating factors, dealers said. The official spot rate was unchanged at Rs 7500, they added. A kind of dullness prevailed on the market as both buyers and sellers kept on the sidelines due to lack of buying interest, dealers said.
They said that the despite the shortage of quality cotton, there was no demand by mills and spinners, which kept proceedings dreary. Late sowing is not encouraging the ginners to sell limited stock with them at below the psychological levels. The mills and spinners have already covered their long position, they observed. If, supply of irrigation water improves, the sowing will improve, they said.
Delay in arrivals of new crop may cause increase in the rates during the next season, they said. Cotton analyst, Naseem Usman said that despite the lack of facilities, the cotton touched around 12 million bales. In the international market, the cotton prices were mostly up, particularly, the NY cotton futures, 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 Ex-Karachi Ex. KHI. As Ex-Karachi
on 04-05-2018
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37.324 kg 7,500 145 7,645 7,645 NIL
Equivalent
40 kgs 8,038 155 8,193 8,193 NIL
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