KARACHI, June 13: Trading activity on the cotton market on Friday remained insipid due to higher asking prices by the ginners and closure of southern Punjab markets for weekly holiday.

As a result no deal was finalised on the ready counter as spinners and mills were said to be buyers below Rs4,000 per maund level.

Floor brokers said the Thursday’s record deal at Rs4,100 per maund had altogether changed the future price outlook and many spinners needing fresh supplies may not go that far.

The next week’s activity would show how many more spinners go for a kill beyond this level or it will prove a speculative deal not warranted by objective conditions prevailing on the world cotton markets, observed a broker.

The interesting feature was that the new crop that had been traded as higher as Rs3,900 per maund for early August delivery during the last couple of weeks was now being quoted around Rs3,700.

But market sources said prices of both lint and phutti may remain on the higher side owing to various factors including higher cost of production and lower planted acreage because of canal water shortage.

Although some stray lots of inferior stuff may be available below Rs4,000 per maund, but fine lots from the current crop may remain expensive.

Official spot rates were, therefore, again held unchanged at Rs3,800 per maund, while on the other hand New York cotton futures extended the overnight gains, up by 0.39 and 0.77 cents per lb at 69.64 and 73.52 cents for both the ruling July and the distant October contracts respectively.

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 3,800 50 3,850

Equivalent

40 kgs 4,072 50 4,122