Modest trading was seen on the cotton market on Thursday as main buyers were conspicuous by their absence amid Eid-ul-Fitr holidays session, 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 2300 and Rs 2400, they said. In the ready business, around, 2000 bales of cotton changed hands between Rs 4700 and Rs 4725, they said.
Market sources attributed the slow trade to lack of buying interest from buyers. They said that most of mills and spinners failed to do any deal due to transportation problem.
Other analysts said that most probably prices may sustain present levels when markets re-open after holidays.
Reuters adds: Benchmark cotton futures on ICE dropped to a three-week low on Wednesday in a broad-based commodities sell-off, weighed by a stronger US dollar. The December cotton contracts on ICE Futures US settled down by 1.26 cent, down 1.9 percent, to 64.87 cents per pound after dropping as low as 64.60 cents. The following deals reported: 400 bales of cotton from Shahdadpur at Rs 4700-4725, 1600 from Mirpurkhas and 400 bales from Kotri all finalised at the same rate, 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 15.07.2015
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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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