Sluggish business on cotton market

The sluggish business was again witnessed on the cotton market on Friday amid short supply of quality lint, dealers said. The official spot rate was unchanged at Rs 6650, they said. In Sindh, seed cotton prices were at Rs 3300-3400, in Punjab phutti rates were at Rs 3300-3700, they said. In the ready season, only 400 bales of cotton from Buchari sold at Rs 6600, as per 40 kg, they added.
According to the market sources most of the mills and spinners were on the sidelines in the process of trading. One factor behind the depressed buying is that leading mills and spinners have already bought enough stock of fine quality to meet their requirements. Cotton analyst, Naseem Usman said that cotton prices have reached saturation point which is creating concern for the textile industry. Resulting, the buyers were reluctant to enter into big deals, other analysts observed.
Besides, it appeared that current season is likely to end some earlier than normal due to short crop, which was another reason for lean cotton trade, some experts said. They observed that as a whole, the world economic condition is not so good, keeping demand at bottom side. New York cotton futures were sharply higher on Wednesday.

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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 23-02-2017   in Rupees

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37.324 kg         6,650      135        6,785         6,785             NIL

Equivalent

40 kgs            7,127      145        7,272         7,272             NIL

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