As a result of ginners' reluctance in fresh purchasing, caused decline in rates on the cotton market on Tuesday, dealers said. The official spot rate after maintaining a stable trend for a long time came down modestly, shedding Rs 50 to Rs 6200, dealers said. In Sindh, seed cotton prices were at Rs 2600-3250, they said that in Punjab, phutti rates were at Rs 2800 and Rs 3500, as per 40 kg, they added. In the ready session, around 3,000 bales of cotton changed hands between Rs 6325-6475, they said. Market sources said that trading activity slowed down as ginners were reluctant in new purchasing because quality was matching with their psychological levels.

The ginners were reluctant in new deals partly because of delay in payments, they observed. Christmas and New Year holidays causing thin activity in the local market, cotton analyst, Naseem Usman said and adding that bank closing also impacted the trading activity in the local market.

He observed that picking operation slowed down as around 95 percent of total production has reached country's ginneries. Besides, Indian cotton booking was on full swing, other brokers said. The following deals reported: 1200 bales from Haroonabad sold at Rs 6325/6350, 400 bales from Hasilpur at Rs 6400/6450, 600 bales from Bahawalpur at Rs 6440 and 400 bales from Rahim Yar Khan at Rs 6475, dealers 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 26-12-2016

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37.324 kg          6,200      135        6,335          6,385           -50

Equivalent

40 kgs             6,645      145        6,790          6,843           -53

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Copyright Business Recorder, 2016