Modest trading was witnessed on the cotton market on Saturday amid slow arrival of phutti in process of trading, dealers said. The Karachi Cotton Association (KCA) official spot rate was unchanged at Rs 6,400, they said. In the ready business, approximately 3000 bales changed between Rs 6250-6500, they said.
The seed-cotton in Sindh was at Rs 2700-2800 and at Rs 2800-2900 in the Punjab, they added. The mills were active to cover the immediate needs, it is expected that trading activity may pick up as the government has withdrawn 3.5 percent withholding tax from ginners on purchase of raw cotton through the third party, experts said. In the meantime, Pakistan Cotton Ginners Association (PCGA) waiting for the notification by the government.
Commenting on the negative impact of recent rain in the cotton growing areas, Naseem Usman said that stagnant water at a time is hitting both the quality and quantity. Some 0.7 million bales have reached into the ginneries, he added. On Friday the US cotton futures finished up by their daily limit on modest investor buying as the market's ability to hold this week's low prompted some mills to begin booking orders, analysts said.
The key December cotton contract on ICE Futures US rose by the four-cent daily limit to finish at $1.052 per lb, off a session low of 96.15 cents. On the week, the market is down 1.04 percent. On Tuesday, the contract finished at 95.80 cents - the lowest settlement for the second-position cotton contract since the middle of September 2010, Thomson Reuters data showed. Total volume traded hit almost 10,000 lots, just under a third below the 30-day norm, Reuters data showed.
The following deals reported: some 400 bales of cotton from Duar sold at Rs 6250, 600 bales from Khanewal at Rs 6600, 200 bales from Shujaabad at Rs 6500, same figure from Haroonabad at Rs 6500, 400 bales from Bahawal Pur at Rs 6500-6600, same figure from Burewala at Rs 6500 and same number from Gojra at the same rate.
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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"
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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 12.08.2011
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37.324 Kgs 6,400 130 6,530 6,530 NIL
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Equivalent
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40 Kgs 6,859 130 6,989 6,989 NIL
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