Small business was seen on the cotton market on Wednesday as spinners continued buying in anticipation of increase in the prices, dealers said. The Karachi Cotton Association (KCA) official spot rate was unchanged at Rs 2600, they added.
The only deal was finalised at Rs 2700 in the ready business, they said. Continued rains in the cotton growing areas and anticipation of short crop, despite the estimation of 14.4 million bales of cotton for the coming season, propelled the mills to make forward deals even at the higher prices, they said.
According to a report the government plan to officially start the biotech (Bt) cotton sowing is in uncertainty as the Environment Ministry rejected the Bt cotton variety developed by the National Institute for Biotechnology and Genetic Engineering (Nibge).
Market sources said that the textile industry is facing shortage of two or three million bales of cotton and the ginners seem happy following the development as they have very small unsold stock to dispose off.
Falling trend persisted in the NY cotton market as the New York Board of Trade's open-outcry July cotton contract dropped 0.45 cent to settle at 54.30 cents per lb., moving from 53.95 to 54.55 cents.
Last on Friday, the contract ended at 54.92 cents in the highest close for cotton since trading above 55 cents in March. The new benchmark December cotton contract shed 0.08 cent to 59.10 cents. The rest ranged from up 0.10 cent to 0.40 cent lower.
Intercontinental Exchange's NYBOT electronic cotton market showed the July contract down 0.49 cent to 54.26 cents at 2:34 pm. The following deal was reported as 1400 bales from Punjab cotton (mill to mill Karachi delivery) sold at Rs 2700.
===========================================================
The KCA Official Spot Rate for Local Dealings in Pak Rupees
-----------------------------------------------------------
FOR BASE GRADE 3 STAPLE LENGTH 1-1/32"
MICRONAIRE VALUE BETWEEN 3.8 TO 4.9 NCL
===========================================================
Rate Ex-Gin Upcountry Spot Rate Ex-Karachi
for Price Sales Tax @ 15%
===========================================================
37.32 Kgs 2600.00 50 2650.00
Equivalent-------------------------------------------------
40 Kgs 2786.00 50 2836.00
===========================================================