Rates halted further decline despite falling buying interest by mills and spinners on Thursday, dealers said. The official spot rate was unchanged at Rs 5400, dealers said. In the ready session, only 2000 bales changed hands between Rs 5100-5600, they said.
Some brokers said that despite the fact the ginners were trying to sell the unsold stock at the reasonable prices but the spinners kept on the sidelines due to financial problems.
A heap of unsold stock of yarn is causing a big problem for them, they have no choice just to adopt a wait-and-see attitude, they said. Cotton analyst, Naseem Usman commenting on the current trend in the world, said that rates may stabilise in the globe but it is before time to predict about the direction of rates in the local market.
Cotton traders were talking about the current issue, they urged the government to save domestic textile industry from closure, experts said. They said that survival of major export oriented industry at stake, besides, they urged the government to reverse its decision regarding Gas Infrastructure Development Cess (GIDC) as it would damage adversely impact the economic activities in the country.
Reuters adds: ICE cotton futures fell to their lowest levels in more than a month on Wednesday, as index funds prepared to roll long positions forward from the July to the December contract, resulting in limited buying interest despite delayed plantings. Cotton contracts for July settled down by 0.26 cent on Wednesday a 0.4 percent loss, at 63.05 cents per pound. It fell as low as 63.03 cents a pound, the lowest level since April 23. July cotton's discount to December cotton rose to 0.98 cent per pound, up from 0.77 cent the prior session. Total futures market volume fell by 1,810 to 25,106 lots. Data showed total open interest fell 108 to 188,719 contracts in the previous session.
The following deals reported: 200 bales of cotton from Karror Pakka sold at Rs 5100, same figure from Mailsi at Rs 5200, 500 bales from Tiba Sultanpur at Rs 5350, 400 bales from Sumandari at Rs 5400, 200 bales from Multan at the same rate and 400 bales from Mian Chano at Rs 5600, they said.
===========================================================================
The KCA Official Spot Rate for Local Dealings in Pakistan 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 27.05.2015
===========================================================================
37.324 Kgs 5,400 150 5,550 5,550 NIL
---------------------------------------------------------------------------
Equivalent
---------------------------------------------------------------------------
40 Kgs 5,787 160 5,947 5,947 NIL
===========================================================================