Selective buying was witnessed on the cotton market on Tuesday, main participants were on the sideline in the absence of guiding factors, dealers said. The official spot rate continued weakness, dropping more Rs 50 to Rs 5250, dealers said. In the ready session, around 3000 bales of cotton finalised between Rs 3750 and Rs 5175, they said.
Seed cotton prices in Sindh were higher by Rs 100 to Rs 2400-2500 and in Punjab rates were same at Rs 2500 and Rs 2600, they said. According to the market sources, ginning factories closed one shift owing to power shortage. Load shedding and lack of guiding factors were the major reason behind the low volume of business, cotton analyst, Naseem Usman said.
Reuters adds: ICE cotton futures rose on Monday, building off gains made due to physical buying and short-covering in the post-settlement period the prior session after a sharp move lower, with automatic buy-stops exaggerating the day's move higher. Cotton contracts for December settled up 0.90 cent on Monday, a 1.4 percent gain, at 64.8 cents per pound. It traded within a range of 63.71 and 64.93 cents a pound. Total futures market volume fell by 728 lots to 19,878 lots. Data showed total open interest gained 66 contracts to 164,517 contracts in the previous session. The following deal reported, 200 bales of cotton from Mirpurkhas at Rs 3750, same number from Hyderabad at Rs 4250, same figure from Dunyapur at Rs 4725, same number from Multan at Rs 4800 and 1635 bales from Jalalpur at Rs 5175, 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 22.06.2015
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37.324 Kgs 5,250 150 5,400 5,450 -50
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Equivalent
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40 Kgs 5,626 160 5,786 5,840 -54
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