Business activity improved on the cotton market on Monday as number of unsold stock is decreasing amid rising demand by exporters, dealers said. Karachi Cotton Association (KCA) official spot rate was unchanged at Rs 5300, they said. Prices of seedcotton in Sindh were at Rs 1900-2350 and in the Punjab at Rs 2000-2650, they said. In the daily business, from other parts of the country, nearly 5000 bales of cotton changed hands between Rs 5100-5700, they added.
Market sources said that mills and exporters purchased cotton following the news that stock of unsold cotton coming down, which is indicating rates may hold the present levels in the coming days. The ginners, now looking, somewhat satisfied after stabilising rates of cotton and prices are likely to maintain present levels in the coming days, they said.
According to a report, India is unlikely to allow fresh cotton exports when ministers meet next week and may not lift the ban at least until July, government and trade sources said. The meeting is due on April 3. Earlier last month, India halted fresh cotton exports after a record 9.5 million bales were sold overseas, stepping back from a shock total ban, and said it would review 2.5 million bales already registered but not shipped.
The following deals were reported: 400 bales of cotton from Ghotki sold at Rs 5675, 200 bales of cotton from Hasil Pur at Rs 5100, 200 bales of cotton from Arifwala at Rs 5200, 400 bales of cotton from Ghazi Ghat at Rs 5400, 2000 bales of cotton from Liaquat Pur at Rs 5500, 400 bales of cotton from Rahim Yar Khan at Rs 5600, same figure from Sadiqabad at Rs 5675 and 700 bales of cotton from Mailsi at Rs 5700.
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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 30.03.2012
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37.324 Kgs 5,300 130 5,430 5,430 NIL
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Equivalent
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40 Kgs 5,680 130 5,810 5,810 NIL
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