Latest arrival of new cotton crop and expectations of meeting the target as estimated in the budget pushed the official spot rates down in the cotton market on Tuesday, dealers said. The Karachi Cotton Association (KCA) official spot rate was lower by 25 at Rs 2350, without upcountry expenses.
The new cotton crop has started reaching the market and propelling the major buyers to take to the sidelines, which was the leading factor behind the fall in the cotton prices, market sources said.
Another big reason for the slide was the government's deadline is to dispose off the remaining stocks with the Trading Corporation of Pakistan (TCP) approaching fast.
The TCP has given the counter offer for Grade 11 to Rs 2476 and Rs 2440 for Grade 111 type 1-1/16. The second type 1-1/30, the TCP offered at Rs 2350.
Not a single deal reported on the ready section, dealers said.
Reuters said that the NY cotton futures finished mixed Monday in activity dominated by small speculators as most players were sidelined waiting for fresh leads in the market, analysts said.
The New York Board of Trade's December cotton contract rose 0.04 cent to settle at 51.80 cents a lb, moving from 51.10 to 51.83 cents. March was flat at 53.95 cents. Except for one contract, the rest lost 0.15 to 0.55 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 2350.00 50 2400.00
Equivalent-------------------------------------------------
40 Kgs 2518.00 50 2568.00
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