Rates fell on the cotton market on Wednesday as leading millers kept on the sidelines in the process of trading, dealers said. The official spot rate was unchanged at Rs 5400, dealers said. In the ready session, over 2000 bales changed hands between Rs 3800-5600, they said. Seed cotton prices in Sindh were at Rs 2100-2700 and in Punjab at Rs 2500-3100, they said.
According to the market sources the Gas Infrastructure Development Cess (GIDC) created confusions among traders, resulting millers showed no interest in fresh buying of cotton, on the other hand, under the circumstances, the ginners started lowering the asking prices as reports showing that arrivals of new crop may begin some early. Cotton analyst, Naseem Usman said that the ginners will now accelerate their efforts toward selling of unsold stock as early as possible.
Reuters adds: ICE cotton futures were little changed on Tuesday after a sharp week of losses brought prices back to attractive levels for mill purchases, ending the losing streak, though sharp gains in the US dollar pressured the market. Cotton contracts for July settled up by 0.01 cent on Tuesday at 63.31 cents per pound. It traded within a range of 63.27 and 64.66 cents a pound. Total futures market volume rose by 3,530 to 26,509 lots. Data showed total open interest gained 1,555 to 188,827 contracts in the previous session.
The following deals reported: 535 bales of cotton from Sultanabad at Rs 3800-3825, 600 bales from Mirpurkhas at Rs 3825, 200 bales from Vehar at Rs 4650, 400 bales from Shujabad at Rs 5500 and same figure from Hasilpur at Rs 5600, 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 26.05.2015
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37.324 Kgs 5,400 150 5,550 5,550 NIL
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Equivalent
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40 Kgs 5,787 160 5,947 5,947 NIL
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