No deal was reported on the cotton market on Tuesday as mills were on the sidelines ahead of Eid holidays, dealers said. The Karachi Cotton Association (KCA) official spot rate was unchanged at Rs 6000, they said. The prices of seedcotton in Sindh were slightly up by Rs 50 to Rs 2350-2550 and rates in Punjab also went up at Rs 2300-2650, they said.
No deal was reported on Tuesday, they said. According to the market sources, the cotton crop may be hit slightly by fresh rains in Sindh and Punjab, as well. The growers and farmer were not interested in picking operation during the Eid holiday, they said. The rains are likely to continue in both the Punjab and Sindh in the coming days. The situation will be clear after Eid holidays, they said. The ginners may come under pressure if phutti arrivals show improvement after rains, they added.
On Monday the NY cotton futures settled higher on investor buying in very thin dealings, with analysts saying a lack of interest and lack of market-moving news may keep trading in fiber contracts quiet this week. The key December cotton contract on ICE Futures US rose 0.60 cent to close at $1.0492 per lb, trading from $1.035 to $1.0578. It was an inside day for the second session in a row because the range was within Friday's $1.0215 to $1.0488 band. The Friday range in turn was within Thursday's $1.0174 to $1.0639 band.
Total volume traded was a little over 4,500 lots, preliminary Thomson Reuters data showed. That would put it on track as the lowest traded daily volume in over 20 months, according to ICE Futures US data.
===========================================================================
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 Spot Rate Difference
For Price Ex-Karachi Ex. KHI. As Ex-Karachi
on 29.08.2011
===========================================================================
37.324 Kgs 6,000 130 6,130 6,130 NIL
---------------------------------------------------------------------------
Equivalent
---------------------------------------------------------------------------
40 Kgs 6,430 130 6,560 6,560 NIL
===========================================================================