Cotton market: sluggish business on less buying interest

Business activity remained slow as both buyers and sellers kept on the sidelines on the cotton market on Friday in the process of trading, dealers said. The official spot rate was unchanged at Rs 7400, they added. In the ready session, over 700 bales of cotton sold at Rs 6400, they said. According to the market sources, trading activity could not pick up in the absence of buyers' buying interest.
Cotton analyst, Naseem Usman said that date for cotton sowing in Punjab may be extended, because sowing started late, so it is most likely that government may consider about the cotton sowing. Commenting on the listless business, other experts said that since the government has announced load shedding for textile sector, most of the leading participants not taking interest in fresh purchasing of cotton.
They said that the ginners have very little stocks of unsold cotton, out of which 20 percent to 30 percent is of good quality. So, that the ginners were trying to take profit of margin as much as they can, they said. In the world market, prices almost moved both ways during the trading session, they said.
Only one deal reported till our going to the Press: 700 bales of cotton from Fort Abbas sold at Rs 6400, 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 17-05-2018

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37.324 kg         7,400       145         7,545        7,545            NIL

Equivalent

40 kgs            7,931       155         8,086        8,086            NIL

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