Modest trade activity on cotton market

Trade activity was modest on the cotton market on Tuesday as major buyers were on the sidelines due to quality factor, dealers said. The official spot rate was unchanged at Rs 4700, dealers said. Seed cotton prices in Sindh were at Rs 2300-2350 and in Punjab rates were at Rs 2350 and Rs 2450, they said. In the ready business, around, 3000 bales of cotton changed hands between Rs 4700 and Rs 5000, they said.
Some needy mills and spinners took part in fresh buying of seed cotton, analysts said. The ginners preferring to sell to meet their financial problems, they said. Cotton analyst, Naseem Usman, however, said that prices may go up after Eid holiday. Despite this factor the ginners were selling to meet Eid related expenditures.
Cotton news over the past week was a "mixed bag but mostly not good for prices," Don Shurley, an agricultural economist at the University of Georgia, said in a note. December cotton contracts on ICE Futures US settled unchanged from the previous session at 65.52 cents per pound. Last week, the December contract dropped nearly 3 percent. The following deals reported: 200 bales from Khipro at Rs 4700, 800 bales from Mirpurkhas at Rs 4700-4750, 1000 bales from Sanghar at the same rate, 400 bales from Shahdadpur at Rs 4800 and 200 bales from Burewala at Rs 5000, dealers 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 13.07.2015

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37.324 Kgs        4,700       150        4,850         4,850            NIL

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Equivalent

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40 Kgs            5,037       160        5,197         5,197            NIL

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