Market sources said that on Friday, the ECC approved a waiver of sales tax and customs duty on the import of cotton. Just after the news, mills indulged in new booking of Indian cotton. They said that trend in the global markets continued to influence domestic trade which was already facing short crop and declining supply of quality lint. It is most likely that Indian exporters, who were backing out from their commitments, may consider to fulfilling it, but with increased rates, they said.
There were some market perceptions that Indian exporters may cancel bookings due to difference between the previous and present rates and partly because of damages by virus, they said. Cotton analyst, Naseem Usman said that timely decision by the government to help in attracting the foreign orders in the upcoming Heimtextil being held from January 9-12 in Frankfurt and it is most likely that a large number of Pak exporters participate.
Adds Reuters: ICE cotton futures slid 1.5 percent on Friday in their biggest one-day percentage loss since late October, as traders booked profits after prices rose above the key 80-cent level for the first time since June 2014. The most active ICE cotton contract for March expiry settled down 1.24 cent, or 1.56 percent, the biggest one-day percentage drop since October 26, at 78.01 cents per lb.
The cotton futures touched a session best of 80.05 cents a lb, a peak since June 2014 and an all-time high for the March contract. Meanwhile, total futures market volume rose by 13,114 to 39,244 lots. Data showed total open interest gained 2,519 to 285,426 contracts in the previous session. The following deals reported: 3100 bales of cotton from Sadiqabad at Rs 8050-8075, 800 bales from M.P. Dewan at Rs 8000, same figure from Shaher Sultan at Rs 7600, 400 bales from Mian Chunu at Rs 7300 and 100 bales from Vehari at Rs 6500, they said.
===========================================================================
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 05-01-2018
===========================================================================
37.324 kg 7,800 145 7,945 7,945 NIL
Equivalent
40 kgs 8,359 155 8,514 8,514 NIL
===========================================================================