Slight improvement was seen on the cotton market on Saturday as the ginners were little interested in fresh selling in the process of trading, dealers said. The official spot rate was unchanged at Rs 6700, they said. In ready session, only 2000 bales of cotton finalised between Rs 6600-6950, they said.
Market sources said that prices have reached saturation point the world over which is worrying the textile industry. So, it is most likely that rates may show soft trend in the near future, they said. Cotton analyst, Naseem Usman said some leading ginners were on the sidelines owing to less selling interest as they have over three lac bales of cotton to dispose off, in the meantime, the mills were not in a hurry for new purchasing due to quality factor. He also said that Khannewal ginning factory buying 3000 maund of seed cotton from Degree at Rs 3800 per 40 kg (delivery for 5 to 25 June).
Reuter adds: ICE cotton futures jumped about 1.5 percent on Friday after touching an over one-month low earlier in the session, supported by demand for the natural fibre even as federal data indicated an increase in the planting area for the crop this year. The May cotton contract on ICE Futures US settled up 1.44 percent at 77.33 cents per lb, after touching a session low of 75.80 cents, a bottom since February 23.
Total futures market volume rose by 14,975 to 41,108 lots. Data showed total open interest fell 2,166 to 277,371 contrracts in the previous session The following deals reported: 300 bales of cotton from Rajanpur at Rs 6600, 620 bales from Mirpur Dewan at Rs 6750, 300 bales from Faqirwali at Rs 6950 and 400 bales from Haroonabad at the same rate, they 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 1-1/16"
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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 Expenses Ex-Karachi Ex. KHI, As Ex-Karachi
on 31-03-2017 in Rupees
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37.324 kg 6,700 135 6,835 6,835 Nil
Equivalent
40 kgs 7,180 145 7,325 7,325 Nil
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