Slow business was seen on the cotton market on Monday as mills and spinners did not take interest in fresh buying, dealers said. The official spot rate was unchanged at Rs 5,200, dealers said. In Sindh, seed cotton prices were at Rs 2200 and Rs 2800 and in the Punjab, rates were at Rs 2300 and Rs 3000, they said. In the ready business, around 5,000 bales of cotton finalised between Rs 5150 and Rs 5350, they said.
The mills are facing financial crisis so that reports appeared that two weekly closer of units is likely due to slow off-take. Cotton analyst, Naseem Usman, said that the ginners, were hoping for better return owing to short crop but they may face losses. He observed that instead of rise in the rate, going down with gradual pace because of huge stock of unsold cotton, which is causing lack of purchasing interest. The following deals reported, 400 bales of cotton from Nawabshah at Rs 5150, 2000 bales from Khairpur at Rs 5300-5350, 2000 bales from Fort Abbas at Rs 5250-5350 and 600 bales from Haroonabad at Rs 5300-5350, dealers 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 05-12-2015
===========================================================================
37.324 kg 5,200 135 5,335 5,335 NIL
---------------------------------------------------------------------------
Equivalent
---------------------------------------------------------------------------
40 kgs 5,573 145 5,718 5,718 NIL
===========================================================================