Lacklustre activity on cotton market ahead of election

May 09, 2013

Cotton Market
Cotton Market

Not a single deal reported on the cotton market on Wednesday as leading participants were on the sidelines owing to electioneering momentum that is in full swing, dealers said. The official spot rate was unchanged at Rs 6,450, they said.

Commenting on the dullness in the market, a cotton trader Amir said that traders adopted wait-and-see attitude as days were very close the general election in the country. In fact it is because of weakness in the fundamentals in the county, while world recession is also an adding factor, other brokers said. Other analysts said that besides there were other negative factors such as short supply of electricity in the textile industry and less availability of quality lint, low demand of yarn and overseas market.

According to the Reuters, most ICE cotton contracts ended on Tuesday with modest losses, as participants prepared for the Department of Agriculture’s first US supply estimates of the coming crop year, which many analysts expect will be hefty though lower than current yields. Most-active July cotton on ICE Futures US settled 0.24 cent lower at 87.15 cents per lb. Volume was 13,808 lots.

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The KCA Official Spot Rate for Local Dealings in Pak 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-Karachion 07.05.2013
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37.324 Kgs        6,450       155         6,605         6,605           NIL
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Equivalent
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40 Kgs            6,912       155         7,067         7,067           NIL
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Courtesy: BR

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