Low business was witnessed on cotton market on Saturday, as all big participants were busy in the TCP auction, brokers said. The official spot rate remained unchanged at Rs 2200, without upcountry expenses. Market prices were in the range of Rs 2000-2200. According to market sources, ginners were in the market to dispose of their current stocks before the arrival of new crop. They said that the cotton sowing would start in the month of June and ginners were trying to sell their stuff. Trading corporation of Pakistan (TCP) had offered 78,000 bales cotton for sale while it has received total bids for 210,000 bales. Mills at Multan offered the highest rate at Rs 2321, Karachi mills at Rs 2270, from Bhawalpur at Rs 2257 and from Rohri mills at Rs 2181 per maund.
The Corporation received offers of 41 cents to 45.11 cents per pound for 25000 bales of cotton.
New York cotton futures settled at four-week low on fund sales spawned by investors getting out of some commodity sectors, and the market could slide further next week, brokers said.
July contract slid 1.33 cents to 53.75 cents a lb, in a band from 53.05 to 54.90 cents. On spot basis, it was the lowest close for cotton since 52.78 cents on April 18. New-crop December shed 0.66 cent to 54.45 cents, moving from 54 to 54.90 cents. The rest fell 0.40 to 1.00 cent.
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The KCA Official Spot Rate for Local Dealings in Pak Rupees
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FOR BASE GRADE 3 STAPLE LENGTH 1-1/32"
MICRONAIRE VALUE BETWEEN 3.8 TO 4.9 NCL
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Rate Ex-Gin Upcountry Spot Rate Ex-Karachi
for Price Sales Tax @ 15%
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37.32 Kgs 2200.00 50 2250.00
Equivalent-------------------------------------------------
40 Kgs 2358.00 50 2408.00
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