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KARACHI (April 14 2010): Slow trading was seen on the cotton market on Tuesday as ginners were not ready to lower the asking prices, dealers said. The Karachi Cotton Association (KCA) official spot rate was unchanged at Rs 5,700, dealers said. In the ready business, just over 1000 bales of cotton changed hands between Rs 5375-5800. Phutti prices in both the Punjab and Sindh were at Rs 2100-2200, they added.
According to the market sources, mills were keenly looking for fine quality but the ginners showed no interest in the fresh dealings due to meagre unsold stock with them. It looks that the ginners were waiting for the prices to touch the new high at Rs 6000 as unsold stock is not enough to meet the local demand, they added.
Besides, Indian government has imposed 3 percent export duty on raw cotton to save local industry, they said. On Monday the NY cotton futures closed firmer on modest investor buying due to a weak dollar but were well below their highs for the day after the early surge fizzled out late in the day, brokers said. The key May cotton contract rose 0.06 cent to end at 78.13 cents per lb, trading from 78.10 to 79.22 cents. It was an inside day since the range was within Friday's 78 to 79.42 cents band.
Volume in the May contract hit 12,199 lots at 2:34 pm EDT (1834 GMT). Most-active July cotton added 0.13 cent to finish at 79.63 cents and new-crop December gained 0.08 cent to close at 75.34 cents. The following deals were reported : 600 bales of cotton from Khanpur sold at Rs 5800, 400 bales from Rahimyar Khan at the same rate and 200 bales from Multan at Rs 5375, they said.
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