Thin activity was seen on the cotton market on Friday as leading participants were on the sidelines in the absence of guiding factors, dealers said. The official spot rate was unchanged at Rs 5450, they said. Nearly 1000 bales changed hands between Rs 5500 and Rs 5600, they said. Some experts said that lack of buying interest kept the buyers away from the market.
In the meantime, sentiment remained firm, they said. Other major reason is report reaching the market about arrival of new crop, this factor is propelling millers and spinners to be sidelined. Additionally, uncertainties over the Gas Infrastructure Development Cess (GIDC) also a reason behind the dull business these days, cotton analysis, Naseem Usman said. He further added that in India, China and the USA, the cotton prices failed to stabilize due to lack of buying interest. Most of commodities are on declining trend due to world recession and hurting business sentiment globally, other analysts said. Unsold yarn stock and rise in sales tax on exports keeping the spinners under pressure, they said.
Reuters adds: The New York cotton futures were down on Thursday. The following deals reported; 400 bales of cotton (mill to mill) sold at Rs 5550 and 600 bales from Kassowal at Rs 5500-5600, they said.
===========================================================================
The KCA Official Spot Rate for Local Dealings in Pakistan 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 11.06.2015
===========================================================================
37.324 Kgs 5,450 150 5,600 5,600 NIL
---------------------------------------------------------------------------
Equivalent
---------------------------------------------------------------------------
40 Kgs 5,841 160 6,001 6,001 NIL
===========================================================================
Comments
Comments are closed.