Not a single deal was reported on the cotton market on Saturday as ginners raised asking price due to short supply, dealers said. The official spot rate was unchanged at Rs 3400, they said. Brokers said that supply was tight. This was the main factor, which propelled the ginners to increase asking price, but the mills were not ready to pay above the export parity levels.
So, the mills remained on the sidelines to observe the latest development after the rains in the cotton belt, they said. Mixed opinions appeared as some cotton experts were of the view that rains were good for the cotton crop but others were guessing that rains may cause slight damage to cotton quality. "But, in fact, after the rains, the situation will be clear. Till then we have to wait," they said.
On Friday, the US cotton futures crumbled from investor liquidation to end sharply lower and analysts said the momentum from the sell-off could spill over into next week. The December contract in New York declined 2.11 cents to finish at 59.61 cents per lb, near the bottom of its 59.49 to 61.92 cents band. Volume traded in the December contract reached 9,166 lots at 2:55 pm EDT (1855 GMT). March contract lost 2.12 cents to end at 61.99 cents.
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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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37.324 Kgs 3,400.00 100 3,500.00
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Equivalent
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40 Kgs 3,644.00 100 3,744.00
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