The post-budget session saw a modest rise in official spot rate on the cotton market on Saturday, dealers said. For the second consecutive day, the official spot rate showed further rise of Rs 50 to Rs 5500, dealers said. In the ready session, around 3000 bales of cotton sold at Rs 4725 and 5650, they said.
Cotton analyst, Naseem Usman said rates posted fresh gains on the back of depleting stock of lint cotton. He said that there were mixed reaction over the budget 2015-16, most of traders were not happy calling it is not a pro-industry budget. Textile manufacturers said that there was not a single measure to help them, reduce their cost of doing business and become competitive in the international market.
Reuters adds: ICE cotton futures fell on Friday to end the week down 0.1 percent, as a stronger dollar pressured prices and traders began to sell July contracts and buy December contracts on the first day of the Goldman Sachs Commodity Index roll. The July contract's losses on Friday were more extensive than the December contract's losses. The most-active December contract on ICE Futures US settled down 0.73 cent on Friday, a 1.1 percent loss, at 64.55 cents per pound.
It traded within a range of 64.30 and 65.37 cents a pound. The December contract's premium to July rose to 0.54 cent per pound, up from 0.16 the prior session. Total futures market volume rose by 570 to 32,224 lots. Data showed total open interest gained 827 contracts to 186,887 contracts in the previous session. The following deals reported: 200 bales of cotton from Karor Pakka at Rs 4725 (Low quality), 2000 bales from Khanpur at Rs 5650 and 600 bales from Yazman Mandi at Rs 5650, 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 05.06.2015
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37.324 Kgs 5,500 150 5,650 5,600 +50
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Equivalent
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40 Kgs 5,894 160 6,054 6,001 +53
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