Sluggish business continues on cotton market

Subdued business was seen on the cotton market on Wednesday as most of the buyers remained on the sidelines on expectations of more slide in the prices in the near future, dealers said.
The Karachi Cotton Association (KCA) official spot rate was unchanged at Rs 2600, they added. The only deal was reported from the Shahdadpur in the ready business, they said. According to the market sources, the ginners are unwillingly selling the unsold stock in the absence of any encouraging news for them. The mills offering to buy at lower rates as they are confident that ginners would have to concede, some brokers said.
Downward trend was seen in the NY cotton futures as the New York Board of Trade's open-outcry July cotton contract eased 0.32 cent to end at 51.60 cents per lb., dealing between 51.60 and 51.80 cents.
The new-crop December cotton contract shed 0.45 to 57.29 cents. Back months declined from 0.25 to 0.65 cent. Intercontinental Exchange's NYBOT electronic cotton market showed the July contract down 0.30 cent to 51.62 cents at 2:34 pm One deal of 200 bales of cotton was reported from Shahdadpur at Rs 2600 (exporters to mill) for Karachi delivery.

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The KCA Official Spot Rate for Local Dealings in Pak Rupees

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FOR BASE GRADE 3 STAPLE LENGTH 1-1/32"

 MICRONAIRE VALUE BETWEEN 3.8 TO 4.9 NCL

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Rate           Ex-Gin     Upcountry    Spot Rate Ex-Karachi

for            Price                        Sales Tax @ 15%

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37.32 Kgs      2600.00        50                    2650.00

Equivalent-------------------------------------------------

40 Kgs         2786.00        50                    2836.00

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