Main leading buyers were conspicuous by their absences on the cotton market on Tuesday due to lack of less buying interest, dealers said. The official spot rate was unmoved at Rs 6700, they said. In ready session, around 1100 bales of cotton changed hands between Rs 6400 and Rs 7000, they said. Market sources said that local market is moving in line with the international market these days.

Cotton analyst, Naseem Usman said that sowing in Sindh is on full swing and now cotton sowing restarted in the Punjab due to easy supply of irrigation water. In the meantime, it was observed that major buyers stayed away from the routine business in the absence of incentives. The overall depressed performances by the textile industry, besides, declining trend in exports discouraging the cotton trade for the last couple of months, other sources said.

The textile industry is asking government to make clear the outstanding amount. Customs duty and sales tax refunds as it was causing financial problems, they observed. On the other hand, according to the Pakistan Bureau Statistic (PBS), textile and closing exports rose 6.2 percent in March.

Adds Reuters: ICE cotton futures fell on Monday, snapping a three-session gain on the first notice day for the May contract, on weaker demand for the natural fibre. The July cotton contract on ICE Futures US settled down 0.68 percent at 78.79 cents per lb, after touching the highest since March 20 at 79.63 cents earlier in the session.

The July contract has reversed. It's showing weakness and that's a little confusing because the sales have been so good. The May cotton contract on ICE Futures US settled up 1.39 percent at 80.09 cents per lb on Monday. Total futures market volume fell by 1,161 to 25,884 lots. The following deals reported: nearly 500 bales of cotton from Samundri sold at Rs 6400 and 600 bales of cotton from Rahim Yar Khan 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 24.04.2017

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37.324 kg          6,700      135         6,835        6,835            Nil

Equivalent

40 kgs             7,180      145         7,325        7,325            Nil

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Copyright Business Recorder, 2017