Trading activity slowed down on the cotton market on Monday as spinners kept on the sidelines due to ginners' unwillingness toward fresh selling, dealers said. The official spot rate was unchanged at Rs 5450, dealers said. In the ready session, over 400 bales changed hands between Rs 4900-5700, they said. Seed cotton rates in Sindh were unchanged at Rs 2000-2600 and in Punjab prices registered at Rs 2400-3100, they said.
According to the market sources, not a single seller was ready to sell cotton at prevailing rates on the other hand the spinners were not willing to pay above their psychological levels. The ginners were anticipating that prices to gain further ground, so that they raised asking despite knowing the fact that spinners or mills will not oblige them. Expected late arrivals of next crop are causing a great concern among the spinners and mills, they said.
Cotton analyst, Naseem Usman said that the spinners were worried about the rates of different taxes. The following deals reported: 140 bales from Vehari at Rs 4900, 100 bales from same station at Rs 5590 and 200 bales from Kassowal at Rs 5700 (conditional), they said.
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The KCA Official Spot Rate for Local Dealings in Pakistan 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 15.05.2015
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37.324 Kgs 5,450 150 5,600 5,600 NIL
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Equivalent
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40 Kgs 5,841 160 6,001 6,001 NIL
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