RECORDER REPORT
KARACHI: Spot rate maintained firm posture on the cotton market on Thursday in the process of post Eid-ul-Fitr holiday session, dealers said.
The official spot rate was unchanged at Rs 6600, they said. In the ready session, not a single deal finalised till our going to the press, they said.
In Sindh, seed cotton prices were available at Rs 3000 per 40 kg, they said.
Commenting on the pre-monsoon rains in both Sindh and the Punjab, market sources said that in both Sindh and Punjab rains have started and this factor is a main hurdle in picking operation.
Some mills and spinners were on the sidelines owing to lack of buying interest, they said.
Lack of incentives by the government, making buyers unable to finalise deals, it is most likely that trading activity may revive next week, they said.
It’s a common feeling among the traders and businessmen that ailing textile sector needs immediate attention of the government.
The sector is the largest urban employment provider and largest foreign exchange earner which deserve resolution of the problems which has taken toll on exports, experts said.
Refund claims, energy crisis, input costs, the burden of the taxes, lack of enabling rules and other issues has increased the cost of doing business in the country.
Reuters adds: ICE cotton futures rose on Tuesday in low volume trade, helped by a weaker dollar, even as rains in key US cotton growing areas raised expectations of a large harvest.
Cotton contracts for December settled up 0.48 cent, or 0.71 percent, at 67.71 cents per lb, registering its biggest percentage gain since June 1. It traded within a range of 67.1 and 68.13 cents a lb. Prices touched a near 10-month low of 66.15 cents in the previous session.
Total futures market volume fell by 4,190 to 17,865 lots. Data showed total open interest gained 1,263 to 200,519 contracts in the previous session.
===========================================================================
The KCA Official Spot Rate for Local Dealings in Pakistan Rupees
---------------------------------------------------------------------------
FOR BASE GRADE 3 STAPLE LENGTH 1-1/16"
---------------------------------------------------------------------------
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 24.06.2017
===========================================================================
37.324 kg 6,600 135 6,735 6,735 NIL
Equivalent
40 kgs 7,073 145 7,218 7,218 NIL
===========================================================================
