Most of the mills and spinners kept on the sidelines in expectations of decline in rates as seed cotton arrivals started from lower Sindh, dealers said on the cotton market on Friday. The official spot rate held the overnight level at Rs 6,800, they added. In the ready session, no any deal was reported, dealers said.
The ginners were not lowering rates, because new crop have started reaching in small number only from Sindh, some brokers said. They also said that new crop arrivals from Punjab will take some time due to late sowing.
Besides, some cotton traders facing problems due to taxes and high cost of doing business, dealers said. Other experts said that textile sector is opposing rise in the Gas Infrastructure Development Cess (GIDC), the textile sector is strongly opposing GIDC, they said that if GIDC not withdrawn, this imposition will faded the benefit of Generalised System of Preference (GSP) plus and textile package announced in the budget 2014-15, experts observed.
According to the China Cotton Association (CCA) China will end sales of state cotton reserves on August 31 ahead of the domestic harvest.
Besides, Egypt's government-backed garment export council wants to expand its base of African cotton suppliers and is seeking to import around 250,000 tonnes a year, a senior industry official said on Thursday.
Reuters adds: Benchmark cotton futures were down on Thursday after lacklustre sales for the 2014/15 crop year offset robust sales for the current crop and as liquidation from the July contract dragged.
The most-active December cotton contract on ICE Futures US edged down 0.06 cent, or 0.08 percent, to settle at 77.13 cents a lb. The front-month July contract, which enters delivery notice period next week and expires on July 9 also weighed on the benchmark contract.
The contract tumbled over 3 cents before closing down 2.79 cents, or 3.1 percent, at 88.36 cents a lb as traders raced to close positions ahead of the expiry.
===========================================================================
The KCA Official Spot Rate for Local Dealings in Pak Rupees
---------------------------------------------------------------------------
FOR BASE GRADE 3 STAPLE LENGTH 1-1/32"
---------------------------------------------------------------------------
MICRONAIRE VALUE BETWEEN 3.8 TO 4.9 NCL
===========================================================================
Rate Ex-Gin Upcountry Spot Rate Spot Rate Difference
For Price Ex-Karachi Ex. KHI. As Ex-Karachi
on 19.06.2014
===========================================================================
37.324 Kgs 6,800 155 6,955 6,955 NIL
---------------------------------------------------------------------------
Equivalent
---------------------------------------------------------------------------
40 Kgs 7,288 155 7,443 7,443 NIL
===========================================================================
Comments
Comments are closed.