Prices showed firmness on the cotton market on Monday amid sluggish business in the absence of leading factor, dealers said. The Karachi Cotton Association (KCA) official spot rate was unchanged at Rs 5,200, they said. Prices of seed-cotton in Sindh were at Rs 1800-2300 and in Punjab rates were at Rs 2000-2600, they said.
In ready dealings above 4,000 bales of cotton changed hands at Rs 3,800-5,300, they said. Wait-and-see attitude was adopted by both buyers and sellers, dealers said. The ginners held the unsold stock to keep themselves away from future losses, they added. In the Pakistan Cotton Ginners Association (PCGA), meeting participants called on the State Bank of Pakistan (SBP) to cut the mark-up rate just to cut the futures losses, and to re-schedule the Bank loans as they are facing problems under the prevailing system, they said.
They also asked the government to order Trading Corporation of Pakistan (TCP) to intervene in the market on SOS basis, otherwise they will go on strike from December 10, 2011. The ginners may stop buying cotton from growers to resist losses as they are already suffering from losses because of higher cost of production, they said.
The following deals were reported: 400 bales of cotton from Mir Pur Khas at Rs 3800, 800 bales from Upper Sindh at Rs 5100-5150, 200 bales from Vehari at Rs 5200, 200 bales from Bahawal Nagar at Rs 5100, 400 bales from Rajan pur at Rs 5300, 1000 bales from Rahim Yar Khan at Rs 5200, 400 bales from Sadiqabad at Rs 5150-5200 and 400 bales Fazil Pur at Rs 5300, they said.
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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"
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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 Ex-Karachi Ex. KHI. As Ex-Karachi
on 26.11.2011
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37.324 Kgs 5,200 130 5,330 5,330 NIL
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Equivalent
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40 Kgs 5,573 130 5,703 5,703 NIL
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