Subdued business on cotton market

Thin trading activity was seen on the cotton market on Tuesday as buyers were conspicuous by their absence, 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 prices were at Rs 3300-3700, as per 40 kg they said. In the ready season, only 2400 bales of cotton sold at Rs 6600-6950, they added.
According to the market sources, most of the leading participants were not interested in new deals as they have enough to meet their requirements. Most of the leading mills and spinners were facing financial problems owing to unsold stock of cotton yarn, they said.
Cotton analyst, Naseem Usman said that in the recent meeting, the Pakistan Cotton Ginners Association (PCGA) has demanded of the government to provide concessions and incentives to meet cost of higher production. The mills were not getting better return in the absence of demand by the international market, other analysts said. They also attributed the fall in the business activity to early closing season, the availability of quality cotton at reasonable rates become difficult.
Due to short supply, the prices were firm and present trend will continue in the coming days, they said. According to Reuters, the New York cotton futures were lower on Monday. The following deals were reported: 600 bales of cotton from Jalalpur sold at Rs 6600 and 1800 bales from Rahim Yar Khan at Rs 6950, they said.

===========================================================================

The KCA Official Spot Rate for Local Dealings in Pakistan Rupees

---------------------------------------------------------------------------

FOR BASE GRADE 3 STAPLE LENGTH 1-1/16"

---------------------------------------------------------------------------

                                    MICRONAIRE VALUE BETWEEN 3.8 TO 4.9 NCL

===========================================================================

Rate              Ex-Gin   Upcountry   Spot Rate    Spot Rate    Difference

For               Price    Expenses    Ex-Karachi  Ex. KHI, As   Ex-Karachi

                                                  on 27-02-2017   in Rupees

===========================================================================

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

Equivalent

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

===========================================================================