Active mills' purchasing was again witnessed on the cotton market on Friday as ginners were not so much interested in keeping the stock with them following the decline in the rates as a result of higher phutti arrivals, dealers said. The Karachi Cotton Association (KCA) official spot rate was maintained at overnight level of Rs 5,750, they said.
Prices of seedcotton in Sindh were up at Rs 2200-2700 and rates in Punjab also followed same pattern and were higher at Rs 2400-2800, they said. In ready dealings about 25,000 bales of cotton changed hands between Rs 5,600-6,000, they added. Some brokers said that mills and spinners extended forward buying ahead of Eid holidays despite the non-availability of transport. In fact, the mills were busy in buying to meet exporters' demand to meet the exports sales to many countries, other experts said.
They said that 70 percent of ginning factories may be closed in Sindh due to short supply of phutti after monsoon floods and this factor causes heavy losses to the ginners and cotton traders. According to the market sources it is most likely that the cotton production may exceed 13 million bales for the current season and country may achieve export target in textile sector.
On Thursday the NY cotton futures ended up by the daily four cent limit at a six-week high as the market rose for the fifth straight session, sparked mainly by news European leaders have forged a deal to resolve the debt crisis, analysts said. The market was also inspired by strong US cotton export sales reported by the US Agriculture Department's (USDA) weekly export sales data and news that Pakistan has cut its cotton output by nearly one million bales.
The key December cotton contract on ICE Futures US went up the four cent daily limit to finish at $1.0432 per lb, with the session low at 99.91 cents. It was the highest settlement for spot cotton in six weeks. Total volume traded on Thursday hit over 23,400 lots, some two-thirds over the 30-day norm, preliminary Thomson Reuters data showed. The market has rebounded strongly since falling last Thursday to end at 96.86 cents in the lowest settlement for the spot contract since September 2010.
The following deals were reported: 800 bales of cotton from Upper Sindh sold at Rs 5600-5700, 200 bales of cotton from Faqir Wali at Rs 5600, 600 bales of cotton from Hasil Pur at Rs 5600/5800, 400 bales of cotton from Chistian at Rs 5600/5675, 200 bales of cotton from Haroonabad at Rs 5600, 600 bales of cotton from Gojra at Rs 5650/5700, 1200 bales of cotton from Rahim Yar Khan at Rs 5700/5800, 400 bales of cotton from Bahawal Nagar at Rs 5600, 400 bales of cotton from Ahmed Pur at Rs 5700, 2000 bales of cotton from Fort Abbas at Rs 5650/5675, 200 bales of cotton from Multan at Rs 5700, 1000 bales of cotton from Noor Pur at Rs 5700, 4000 bales of cotton from Bahawal Pur at Rs 5700/5750, 200 bales of cotton from Shujabad at Rs 5700/5775, 800 bales of cotton from Shujabad at Rs 5700/5775, 800 bales of cotton from Jalal Pur at Rs 5700, 800 bales of cotton from Yazman Mandi at Rs 5700, 2000 bales of cotton from Khanewal at Rs 5750/6000, 200 bales of cotton from Shehar Sultan at Rs 5800, 1400 bales of cotton from Arif Wala at Rs 5800, 400 bales of cotton from Vehari at Rs 5800, 600 bales of cotton from Chichawatni at Rs 5800, 400 bales of cotton from Ali Pur at Rs 5800, 2000 bales of cotton from Burewala at Rs 5800/5850, 600 bales of cotton from Gajjo Mandi at Rs 5800, 200 bales of cotton from Layyah at Rs 5900, 200 bales of cotton from Bhakkar at Rs 5900, 200 bales of cotton from Muhammad Pur at Rs 5900 and 1000 bales of cotton from Rajan Pur at Rs 5900/6000.
===========================================================================
The KCA Official Spot Rate for Local Dealings in Pak 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 Difference
For Price Ex-Karachi Ex. KHI. As Ex-Karachi
on 27.10.2011
===========================================================================
37.324 Kgs 5,750 130 5,880 5,880 NIL
---------------------------------------------------------------------------
Equivalent
---------------------------------------------------------------------------
40 Kgs 6,162 130 6,292 6,292 NIL
===========================================================================
Comments
Comments are closed for this article.