Spot rate up on price war
Spot rate gained modestly on the cotton market on Thursday as price war continued between buyers and sellers, dealers said. Official spot rate was higher by Rs 50 to Rs 5,850, they said. Approximately, 2200 bales of cotton finalised between Rs 5625 and Rs 6000, they said.
Copyright Business Recorder, 2012
Prices of seedcotton (phutti) in Sindh were at Rs 2400-2700, in Punjab, rates were at Rs 2600-2800, they said. Some brokers said that rates are slightly firm as ginners and growers were not ready to sell at the present levels, on the other hand, the mills kept on the sidelines because they are getting finer type of cotton at the same prices, why they should buy low quality at high cost?
In the meantime, the mills who were interested in the purchasing of cotton to meet the near-term requirements, they bought despite the higher prices, cotton analyst Naseem Usman said. According to the Reuters, the US cotton futures closed slightly lower on Wednesday, dropping along with other commodities which weakened on a stronger dollar.
Comments by US House Speaker John Boehner voicing optimism that Republicans could broker a pact with the White House to avoid an impending budget crisis helped lift prices off early lows, alongside broader financial markets. The most-active March contract on ICE Futures US fell 0.11 cent, or 0.15 percent, to settle at 72.63 cents per lb, rebounding from a session low of 71.65 cents.
"We're still in the recent range. I'd call the market fair value, with support at 70 cents. There's not much to push it lower," said a risk manager with a merchant The following deals were reported: 1000 bales from Nawab Shah at Rs 5625, 2400 bales from Khairpur at Rs 5950/6000, 1000 bales from Upper Sindh at Rs 5950, 200 bales from Shah Jewana at Rs 5800, 400 bales from Kabirwala at Rs 5850, 1000 bales from Bahawalpur at Rs 5850, 1000 bales from Hasilpur at Rs 5850, 600 bales from Faqirwala at Rs 5850, 600 bales from Burewala at Rs 5850-5900, 800 bales from Daranwala at Rs 5850, 600 bales from Dera Ghazi Khan at Rs 5875/5900, 400 bales from Ghazi Ghat at Rs 5900, 1200 bales from Alipur at Rs 5900, 1000 bales from Vehari at Rs 5900, 1000 bales from Haroonabad at Rs 5900, 800 bales from Liaquatpur at Rs 5900, 400 bales from Lodhran at Rs 5900, 800 bales from Fort Abbas at Rs 5900, 1200 bales from Tonsa Sharif at Rs 5900-5950, 200 bales from Layyah at Rs 5950, 400 bales from Khanewal at Rs 5950, 600 bales from Shadan Lund at Rs 5950, 800 bales from Fazilpur at Rs 5950, 400 bales from Muhammadpur at Rs 5950, 1400 bales from Mianwali at Rs 5950/6000 and 1400 bales from Rajanpur at Rs 5950-6000, they said.