Little business seen on cotton market

Lacklustre conditions were witnessed on the cotton market on Tuesday as leading spinners kept on the sidelines in the process of trading, dealers said.The official spot rate was unchanged at Rs 5,350, dealers said. In Sindh, prices of seed cotton at Rs 1600 and Rs 2800, in the Punjab, rates were at Rs 2000 and Rs 3000, they said.In the ready business, about 1400 bales of cotton changed hands at Rs 5550, they said.According to the market sources, the spinners were not keen in making fresh deals because they are already facing losses due to high risk of doing business in absence of incentives by the government.Cotton analyst, Naseem Usman said buyers were conspicuous by their absence, on the other hand, the ginners also kept on the sidelines.Other analysts said that the government's long slogans to provide several incentives to poor growers to increase production and quality as well, failed to show it's promises.Reports appeared that China is targeting a 6.5 percent reduction in cotton cultivation in its top growing region this year, as it attempts to create conditions more favourable to a release of some of its huge state stocks.A cut would be the third consecutive annual reduction and bring the elimination of land given to cotton since 2014 to more than 400,000 hectares, Cncotton.com said on Tuesday.The plan comes as Beijing looks to offload a portion of its bulging state cotton reserves into a market already showing its weakest demand for the fibre in years.===========================================================================The KCA Official Spot Rate for Local Dealings in Pakistan Rupees---------------------------------------------------------------------------FOR BASE GRADE 3 STAPLE LENGTH 1-1/32"---------------------------------------------------------------------------MICRONAIRE VALUE BETWEEN 3.8 TO 4.9 NCL===========================================================================Rate Ex-Gin Upcountry Spot Rate Spot Rate DifferenceFor Price Ex-Karachi Ex. KHI. As Ex-Karachion 15-02-2016===========================================================================37.324 kg 5,350 135 5,485 5,485 NILEquivalent40 kgs 5,734 145 5,879 5,879 NIL===========================================================================News SourceNews Collated byPAKISSAN.comCourtesy Business Recorder