Business activity failed to show any improvement due to lack of buying interest by spinners and mills, dealers said on the cotton market on Saturday. The official spot rate was unchanged at Rs 5,350, dealers said. In Sindh, prices of seed cotton at Rs 1600 and Rs 2800, in the Punjab, rates were at Rs 2000 and Rs 3000, they said.
In the ready business, about 3000 bales of cotton changed hands between Rs 4585 and Rs 5600, they said. Cotton analyst, Naseem Usman said that falling trend in the NY cotton futures and Lunar year holidays in the Far East, forced the leading buyers to keep on the sidelines. A huge stock of unsold yarn and decline of 3.5 billion dollars in the textile exports causing uncertainties among the buyers, he added.
Other brokers said that as a whole, the picture is not clear about the future trading as market is in grip of uncertainties, and how far present condition would persist, it is very difficult to predict?
Reuters adds: Cotton futures ended slightly lower on Friday, easing to their biggest weekly loss since September 2015 after days of selling pressure of weak commodities markets and a bearish US government report.
The second-month contract traded within a tight range throughout the session, ending the week down over 3 percent and touching the lowest prices since January 2015. The most active May cotton contract on ICE Futures US settled down 0.07 cent, or 0.1 percent, at 58.64 cents per lb, after hitting 58.39 cents per lb. The following deals reported: 2000 bales from Haroonabad sold at Rs 5280, 1000 bales from Sher Sultan at Rs 5300 and 400 bales from Shujabad at Rs 5575, 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 12-02-2016
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37.324 kg 5,350 135 5,485 5,485 NIL
Equivalent
40 kgs 5,734 145 5,879 5,879 NIL
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