Steadier trend on cotton market
Firmness prevailed on the cotton market on Thursday because supply was short in demand, dealers said. Official spot rate was unchanged at Rs 5650, they said. In the ready business, over 4000 bales of cotton changed hands between Rs 5650-5800, they said.
Copyright Business Recorder, 2012
Prices of seedcotton in Sindh held the overnight level at Rs 1800-2400 while in the Punjab low type picked up Rs 200 to Rs 2000 and the best quality was unchanged at Rs 2400, they added. Commenting on the monsoon rains in the country, particularly in cotton belt, analyst Naseem Usman said that Sindh may receive light rains but it looks that rainfall likely to continue in the Punjab.
So, it is expected that the phutti arrivals may begin in the near future, as a result price may not maintain present levels, other brokers said. Some experts said that the recent rains had caused some damage to the standing crop, but it was too early to reckon about the losses. Other experts said that it is feared that recent fire incident at Hub River Road garments factory may hurt the country's image in the world market, this incident likely to hurt Pak exports because it is likely that importing countries may face delay in delivery due to lack of safety measures and in the absence of several facilities in the garment factories, they said.
According to the Reuters, the New York cotton prices fell to three-week lows on Wednesday after the US government raised its estimate for global stockpiles in 2012/13 to a new record due to lower imports and consumption in China, the world's largest textile market. The global outlook offset a rosier outlook for the United States, the world's No 3 producer of fibers - where it cut the output forecast from August.
In its monthly crop report, the Agriculture Department raised its estimate for the global surplus by next July to a new record of 76.5 million 480-pound bales. The following deals reported: 200 bales of cotton from Hala at Rs 5675, 200 bales from Pir Mahal at Rs 5650, 600 bales from Sahiwal at Rs 5650/5750, 200 bales from Adda Floor at Rs 5700, 200 bales from Fort Abbas at Rs 5700, 200 bales from Hasil Pur at Rs 5700, 200 bales from Adda Pur at Rs 5700, 200 bales from Chaniot at Rs 5700, 200 bales from Kabir Wala at Rs 5700, 200 bales from Chichawatni at Rs 5700, 600 bales from Khanewal at Rs 5700/5750, 200 bales from Pak Pattan at Rs 5700, 200 bales from Gaggo Mandi at Rs 5725, 200 bales from Chichawatni at Rs 5750, 200 bales from Depal Pur at Rs 5800, dealers said.