KARACHI, Dec 14: Trading activity on the cotton on Friday fell to modest proportions as major trading centres in the Punjab remained closed owing to weekly holiday.

Some floor brokers said spinners and mills were not inclined to make fresh commitments at the higher asking prices and stayed away slowing down the current trading tempo.

About 5,000 bales changed hands between Rs3,000 to Rs3,100 per maund based on quality of lint as spinners were unwilling to pay beyond their export parity levels, they added.

The other inhibiting factor was said to be steady arrivals of the imported stuff under forward deals signed some months back by the leading spinners and mills, they added.

According to official figures released by Federal Bureau of Statistics about 0.135m bales of lint were imported from various foreign destinations during November to make up local crop shortfall, market sources said.

The government has allowed import of about 0.8m bales of cotton from India via land route, which could have negative impact on the local prices after the shipments start arriving in the Punjab textile mills, they added.

However, some other ruled out the possibility of any major fall in the local prices despite divergent views about the quality and alleged adulteration by the growers in some of the areas.

They said short crop will continue aiding local prices in the coming sessions too because its suits most to the local textile industry for its staple and fibre length.

Official spot rates were held unchanged at Rs3,000 per maund, although most of the deals in the ready section were done at the higher prices.

New York cotton futures on the other hand fell slightly on selling, off 0.34 and 0.48 cents per lb at 64.91 and 66.36 cents, respectively.

Mills ready off-take was light totalling about 5,000 bales as under: 200 bales, Shahdadpur at Rs3,000, 800 bales, each Ahmedpur East and Shah Jamal, 400 bales, Fazilpur and 200 bales, Rajanpur at Rs3,100, 200 bales, Burewala, Mongi Bangalow, Chichawatni and Khanewal at Rs3,050 and 200 bales, Lodhran at Rs3,060.

The following are Friday’s new crop Karachi Cotton Association (KCA) official spot rates for local dealings in Pak rupees for base grade 3 staple length 1-1/32” micronair value between 3.8 to 4.9 NCL.

Rate for Ex-Gin Price Up-country Spot rate

Expenses Ex-Karachi

37.324 kgs 3,000.00 50 3,050.00

Equivalent

40 kgs 3,215.00 50 3,265.00