Prices failed to maintain present levels on the cotton market on Monday in the absence of leading participants, dealers said. The official spot rate was down by Rs 50 more at Rs 5,250, dealers said. In Sindh, seed cotton prices were at Rs 2000-2200, and in Punjab prices at Rs 2500 and Rs 2900, they said. In the ready business, around 13,000 bales of cotton changed hands between Rs 5100-5500, they said.
Market sources said that trading activity came down following the report short supply position from fields after rains. Besides, China is going to release it's cotton reserves from next month is also a factor behind the change of mind of buyers, experts said. Some analysts said that some needy buyers finalised deals to meet urgent requirement.
Reuters adds: China's government may begin selling its bulging state cotton reserves starting from the middle of April, with a priority to offer good-quality cotton, including imported fibre, a government official said last week. The following deals finalised: 200 bales of cotton from Mehrabpur at Rs 4900, 1000 bales from Dharki at Rs 5500, same figure from Khanewal at Rs 5100 and 600 bales from Hasilpur and 1200 bales from Nawabshah at Rs 5500, 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 19-03-2016
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37.324 kg 5,250 135 5,385 5,435 - 50
Equivalent
40 kgs 5,626 145 5,771 5,825 - 54
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