Volume of business slowed down on the cotton market on Wednesday as mills and spinners were on the sidelines ahead of Eid holidays, 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 4750 and Rs 4800, they said.
According to the market sources, mills and spinners took little interest in fresh buying due to long holidays. Other analysts said that increase in load shedding and some other problems forced millers to stop operation.
Besides, reports showing that Chinese cotton imports dropped nearly 26 percent in June from the year before as relatively high international prices and a lack of quotas for shipments curbed appetite for overseas purchases. The world's top consumer of the fibre imported 161,800 tonnes in June, meaning the total for the first six months of the year plunged 33 percent from the same period in 2014 to 933,900 tonnes.
Reuters adds: Benchmark cotton futures on ICE gained the most since late June on Tuesday, as low prices and key chart levels stoked buying.
Hot, dry weather across the South-eastern United States could hurt crops in a key growing region of the world's top exporter and falling exchange inventories also supported, he said. The December cotton contracts on ICE Futures US settled up 0.61 cent, or 0.9 percent, at 66.13 cents per pound. The following deals reported: 1000 bales of cotton from Sanghar at Rs 4750-4800, 600 bales from Tando Adam at the same rate and 1200 bales from Shahdadpur at Rs 4775-4800, 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 14.07.2015
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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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