Strong mills' buying was again witnessed on the cotton market on Friday as rates depicted upward trend in global and domestic market, dealers said. The Karachi Cotton Association (KCA) spot rate was unchanged at Rs 10,000, they said. Phutti prices are not available as ginners are not buying the commodity from the growers, they said.
In ready business, prices were firm as nearly 12000 bales of cotton changed hand between Rs 9,500-10,500, they added. According to the market sources, continued rise in the world market, forced the mills to keep buying to fulfil exports obligations.
Commenting on the short supply position, they said that tight supplies the world over, kept the buyers on toe as they were not showing any reluctance in purchasing of cotton at the higher rates. According to a report, India may allow more cotton exports in 2010/11, Farm Minister Sharad Pawar told reporters on Friday.
"We expect the cotton production to be slightly higher than the initial estimates. We will have to give a serious thought on further exports," he said. Pawar said the country's cotton production in the current year from October may top 33.5 million bales.
India may announce new measures for futures deals in the next month meeting, but it's a fact India is in a position to sell more cotton and can earn better profit due to higher rates. The ginners are on the sidelines and hoping for the positive outcome from tomorrow's meeting with the finance minister. On Thursday the US cotton futures, bucking a commodity-wide selling spree, closed the daily limit up on suspected mill and options-related fund buying in the market, dealers said.
The key March cotton contract on ICE Futures US climbed the 4.00 cents limit to settle at $1.5294 per lb, with the session low at $1.4802. It was the highest close for the spot contract in a month, Thomson Reuters data showed. Volume traded was around 19,500 lots, about 50 percent below the 30-day norm, Thomson Reuters preliminary data showed.
The following deals were reported: 400 bales of cotton from Nawabshah sold at Rs 9900, 400 bales of cotton from Sanghar sold at Rs 10000, 800 bales of cotton from Shahdad Pur sold at Rs 10000, 600 bales of cotton from Tando Adam sold at Rs 10000, 1600 bales of cotton from Khair Pur sold at Rs 10100, 400 bales of cotton from Ghotki sold at Rs 10300, 400 bales of cotton from Mailsi sold at Rs 9500, 200 bales of cotton from Keroor Pacca sold at Rs 9700, 200 bales of cotton from Bahawal Nagar sold at Rs 9800, 800 bales of cotton from Burewala sold at Rs 9875, 400 bales of cotton from Hasil Pur sold at Rs 9900, 1000 bales of cotton from Shujabad sold at Rs 10000, 400 bales of cotton from Khanewal sold at Rs 10100, 400 bales of cotton from Rahim Yar Khan sold at Rs 10200, 400 bales of cotton from Sadiqabad sold at Rs 10200, 200 bales of cotton from Muhammad Pur sold at Rs 10200, 400 bales of cotton from Jam Pur sold at Rs 10200, 800 bales of cotton from Fazil Pur sold at Rs 10300, 400 bales of cotton from Fazil Pur sold at Rs 10300, 400 bales of cotton from Rajan Pur sold at Rs 10300 and 400 bales of cotton from Sadiqabad sold at Rs 10500.
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The KCA Official Spot Rate for Local Dealings in Pak Rupees
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FOR BASE GRADE 3 STAPLE LENGTH 1-1/32"
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MICRONAIRE VALUE BETWEEN 3.8 TO 4.9 NCL
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Rate Ex-Gin Upcountry Spot Rate Spot Rate Difference
For Price Ex-Karachi Ex. KHI. As Ex-Karachi
on 20.01.2011
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37.324 Kgs 10,000 120 10,120 10,020 NIL
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Equivalent
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40 Kgs 10,717 120 10,837 10,837 NIL
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