Modest trade activity on cotton market

Modest trade activity was witnessed on the cotton market on Tuesday as buyers and sellers both remained on the sidelines owing to short supply of quality lint, dealers said. The official spot rate was unchanged at Rs 6800, they said. In Punjab, prices of phutti were at Rs 3700-3800, as per 40 kg, they said.
In ready session 2000 bales of cotton changed hands between Rs 6800 and Rs 7000, they said. According to the market sources, both buyers and sellers refrained from new deals due to short supply. Cotton analyst, Naseem Usman sharing the same view said that spinners were keen to buy quality lint but were not interested in paying above their psychological levels.
Besides, spinners were facing difficulties in exporting of cotton yarn in the international market owing to uncompetitive prices, he added. In the meantime, there was fairly good demand was seen for yarn on the local market, other experts said. On the other hand, the ginners have around 500,000 bales of cotton and they are also careful in disposing of these stocks in anticipation of getting best price in the near future, they said.
Additionally, prices of polyester yarn influenced by declining trend in the global market, slid to Rs 127 from Rs 129, they added. In China and New York, prices were soft, indicating rates may come down in the coming days, other brokers said. The following deals reported: 1000 bales of cotton from Rahim Yar Khan sold at Rs 6800 and same figure from same station done at Rs 7000, 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 1-1/16"
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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 20.03.2017
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37.324 kg         6,800       135         6,935        6,935            NIL
Equivalent
40 kgs            7,288       145         7,433        7,433            NIL
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