Lean business observed on cotton market as ginners shun selling at ruling prices

Trading activity came down on the cotton market on Monday as the ginners were not interested in selling at the present levels, dealers said. The official spot rate was unchanged at Rs 5,700, they said. Prices of seedcotton in Sindh were at Rs 1800-2400 and in the Punjab at Rs 2000-2700, they said.
In ready dealings, trading activity came down sharply as approximately 3,000 bales of cotton changed hands at Rs 4,500-5900, they added. Some brokers said that the ginners were expecting Trading Corporation of Pakistan (TCP) intervention to resist sharp fall in the cotton prices. They also said that cotton buying is slow the world over and prices coming down in the local market due to better-than-expected cotton production estimates.
In the meantime, the mills and spinners were on the sidelines, hoping prices may show further weakness in the absence of TCP's move, other analysts said.
The following deals were reported: 200 bales of cotton from Mirpur Khas sold at Rs 4500, 400 bales of cotton from Mir Pur Khas at Rs 5300, same figure from Bahawal Nagar at the same rate, 400 bales from Rahim Yar Khan at Rs 5900 and same figure from Sadiqabad at same rate.

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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"

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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 03.02.2012

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37.324 Kgs         5,700      130        5,830         5,830            NIL

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Equivalent

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40 Kgs             6,109      130        6,239         6,239            NIL

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