Official spot rate fell on the cotton market on Saturday in the process of slow trading, dealers said. The official spot rate was down by Rs 50 to Rs 5350, dealers said. In the ready session, around 600 bales of cotton finalised between Rs 4800 and Rs 5335, they said.
Seed cotton prices in Sindh slipped by Rs 100 to Rs 2300-2400 and in Punjab rates were at Rs 2500 and Rs 2600, they said. Market sources said that buyers were sidelined due to little interest in fresh purchasing. Cotton analyst, Naseem Usman said that pre-monsoon rains expected in different parts of country, which will be beneficial fro standing crop. The ginners were trying to sell as much as they can sell from the old stock but the mills and spinners reluctant to enter into the new deals, other brokers said.
Reuters adds: ICE cotton futures fell on Friday as investors liquidated long positions ahead of the first notice day for the July contract next Wednesday, as the spread between July and the most-active December contract remained relatively stable. December cotton on ICE Futures US settled down by 0.82 cent on Friday, a 1.3 percent loss, at 63.90 cents per pound. It traded within a range of 63.50 and 64.75 cents a pound. December's premium to July fell to 0.58 cent per lb, down from 0.64 cent per lb the prior session.
Total futures market volume fell by 68 lots to 18,562 lots. Data showed total open interest fell 320 lots to 164,451 contracts in the previous session. The following deal reported, 2000 bales of cotton from Khanpur at Rs 5450, 200 bales from Golarchi at Rs 5000 for July first delivery, same figure from Kotri at Rs 5150 and same number from Sanghar at Rs 5200, they said.
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The KCA Official Spot Rate for Local Dealings in Pakistan 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 19.06.2015
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37.324 Kgs 5,350 150 5,500 5,550 -50
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Equivalent
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40 Kgs 5,734 160 5,894 5,947 -53
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