Seedcotton prices rise on Prime Minister's assurance to PCGA
seddcotton prices showed substantial rise on the cotton market on Tuesday following the Prime Minister's assurance to the Pakistan Cotton Ginners Association (PCGA) that the Trading Corporation of Pakistan (TCP) would intervene and also directed the concerned authority to arrange finance for purchasing cotton, dealers said.
Copyright Business Recorder, 2011
The Karachi Cotton Association (KCA) official spot rate was inert at Rs 4,900, they said. Prices of seedcotton in Sindh were higher by Rs 100 to Rs 1600-2300 and in the Punjab prices followed the same pattern, gaining Rs 100-200 at Rs 1600-2500, they said.
In ready dealings approximately 25,000 bales of cotton changed hands at Rs 3400-5,000, they added. According to the market sources, mills and spinners showed interest in cautious purchasing as the Prime Minister assured the delegation of the PCGA, led by Amannuall Qurashi that the TCP would buy cotton to bring stability in the rates.
To purchase cotton, Prime Minister, at the same time, asked the concerned authority to start initial work to buy, dealers said. Commenting on volatile prices, some experts were of the view that cotton arrivals have increased and would decide future direction of the trade. The Pakistan Cotton Ginners Association (PCGA) report showing that cotton arrivals in the country went up by 17.69 percent to 11.036 million bales till December 15, 2011 against 9.377 million bales of cotton during the corresponding period last year. During the first five months of current fiscal year exports of Value-added items recorded a sharp decline of 20 percent, which is definitely not a good omen for the foreign exchange reserves.
Reuters adds: On Monday the NY cotton futures closed higher after small investors bought in light range-bound business, with analysts predicting a subdued market tone will persist through the end of the year. The key March cotton futures went up 0.80 cent to close at 87.09 cents per lb, dealing from 85.90 to 87.50 cents. It was an inside day, with trading confined within Friday's 85.27-87.94 cent band. Volume traded stood at slightly over 4,800 lots, more than three-quarters under the 30-day norm, Thomson Reuters preliminary data showed. Total volume traded on Friday stood at 7,021 lots, according to preliminary Thomson Reuters data.
The following deals were reported: 400 bales of cotton from Mir Pur Khas sold at Rs 3400, 200 bales of cotton from Shahdad Pur at Rs 3500, 4000 bales of cotton from Khair Pur at Rs 4400/4550, 2000 bales of cotton from Upper Sindh at Rs 4650/4700, 400 bales of cotton from Bahawal Nagar at Rs 4650/4700, 200 bales of cotton from Dunga Bunga at Rs 4600, 2000 bales of cotton from Haroonabad at Rs 4600/4650, 400 bales of cotton from Arif wala at Rs 4700, 400 bales of cotton from Kaicha Wala at Rs 4700, 1000 bales of cotton from Hasil Pur at Rs 4700, 400 bales of cotton from Sahiwal at Rs 4700, 400 bales of cotton from Tandlian at Rs 4700, 1000 bales of cotton from Burewala at Rs 4700, 600 bales of cotton from Layyah at Rs 4750, 1000 bales of cotton from Khanewal at Rs 4750/4800, 1000 bales of cotton from Bahawal Pur at Rs 4800, 400 bales of cotton from Maroot at Rs 4800, 600 bales of cotton from Fort Abbas at Rs 4850, 400 bales of cotton from Dera Ghazi Khan at Rs 4900, 400 bales of cotton from Liaquat Pur at Rs 4900, 5000 bales of cotton from Rahim Yar Khan at Rs 4900/5000, 1000 bales of cottn from Sadiqabad at Rs 4900, 1000 bales of cotton from Rajan Pur at Rs 4900/4975, 600 bales of cotton from Shah Jamal at Rs 4900, 800 bales of cotton from Mianwali at Rs 4925/5000, 400 bales of cotton from Shadan Lund at Rs 5000, 400 bales of cotton from Tonsa Sharif at Rs 5000.