Higher trend in the cotton prices discouraged the buyers on the local market on Wednesday as both the TCP and ginners were not inclined to lower the rates, dealers said. The Karachi Cotton Association (KCA) official spot rate was unchanged at Rs 2275, without upcountry expenses.
Mainly this was the reason behind the lacklustre business activity for the last several weeks, dealers said. The ginners have very small quantity of cotton in their godowns and the quality is best, these factors propelling them to stay for a while for better bargain, they noted.
Besides, another the encouraging factor was recent rebound in the NY cotton futures, which is giving space to the sellers to evolve future strategy, cotton analysts said.
Like every year, the ginners were keeping unsold stock with them in anticipation of that when the Trading Corporation of Pakistan (TCP) will dispose off its all stock and will enjoy the monopoly in price line.
Focus of the market players were on the TCP's auction on 27 as the next price trend likely to take a lead from that point , analysts said.
They said that with the arrival of the fresh cotton in the local markets. the prices may tend downward.
Reuters added: the NY cotton extended its rebound to close higher on Tuesday on speculative buying, analysts said. The New York Board of Trade's July contract rose 0.57 cent to end at 48.73 cents a lb., ranging from 48 to 49 cents. New-crop December gained 0.54 to 53.03 cents, dealing from 52.65 to 53.39 cents.
The rest increased 0.46 to 0.80 cent.
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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 2275.00 50 2325.00
Equivalent-------------------------------------------------
40 Kgs 2438.00 50 2488.00
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