After maintaining a stable trend for a long time, official spot rates slid modestly on the cotton market on Monday, dealers said. The official spot rate was down by Rs 50 to Rs 5,200, dealers said. In Sindh, seed cotton prices were unchanged at Rs 2200 and Rs 3000 and in the Punjab, rates held at the last levels at Rs 2200 and Rs 3100, they said.
In the ready business, over 7,000 bales of cotton finalised between Rs 5200 and Rs 5600, they said. Market sources said that at the end of the year, both buyers and sellers were on the sidelines due to lack of interest. Some needy mills showed interest fresh buying of cotton to meet their urgent requirements, they added. Cotton analyst, Naseem Usman said that the whole world particularly, China and India were facing limited business due to said reason. He was expecting that normal trading activity may resume in the first week of next year. But he said that it is pre time to say any thing about the direction of market.
Reuters adds: The Indian government's purchases of cotton are set to plunge 89 percent in the 2015/16 marketing year as local prices have jumped after crop failures forced neighbouring Pakistan to raise imports from the world's biggest producer of the fibre. The increase in shipments to Pakistan, Bangladesh and Vietnam will help India trim spending on cotton buys by nearly 140 billion Indian rupees ($2 billion) in the year that started on October 1, although the rise in volumes on the international market will cap recent gains in global prices.
The following deals reported: 1000 bales of cotton from Dadu sold at Rs 5200, 600 bales from Haroonabad at Rs 5200, 400 bales from Fort Abbas at Rs 5200, 600 bales from Faqirwali at Rs 5200, 200 bales from Chistian at Rs 5400, 200 bales from Hasilpur at Rs 5400, 400 bales from Fazilpur at Rs 5500, 800 bales from Rajanpur at Rs 5500, 400 bales from Mianwali at Rs 5525 and 2000 bales from Shadan Lund at Rs 5600, 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 26.12.2015
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37.324 kg 5,200 135 5,335 5,385 -50
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Equivalent
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40 kgs 5,573 145 5,718 5,771 -53
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