Surge in demand by the cotton importing countries may help prices to resist decline in the coming days, dealers said on the cotton market on Friday. The Karachi Cotton Association (KCA) official spot rate was increased by Rs 100 to Rs 5,800, they said. Prices of seedcotton in Sindh were unchanged at Rs 2200-2700 and in Punjab rates held the overnight level at Rs 2400-2900, they said.
In ready dealings above 20,000 bales of cotton changed hands at Rs 4,800-5900, they added. Market sources said that activity came down as both ginners and growers resisted panic selling to gain profit after sharp rise in the rates. In the meantime, the mills and spinners continued buying to meet the urgent demand, they said. Some of them said that trend was down in the NY cotton market, so many buyers kept on the sidelines to see the fresh development, they said.
Besides, Pakistan Cotton Ginners Association (PCGA) issued its fortnightly report of phutti arrivals till November 15, at about 8 million bales of cotton against the last year figure of 7.5 million bales, showing a rise of 0.5 million bales of cotton. According to a report, China has booked nearly one million tonnes of cotton from overseas to refill state reserves, an industry website said on Friday, much higher than the market had expected.
China booked the imported cotton while global prices were relatively low, said a statement published on www.chinacotton.org, which is jointly owned by three shareholders including the country's national cotton exchange. On Thursday, the NY cotton futures settled down the daily limit on investor liquidation as weak demand and fear over a global recession which hit other financial markets depressed fiber contracts, analysts said.
The spot December cotton contract on ICE Futures US dropped four cents to finish at 99.50 cents per lb, with the day's top at $1.0396. The now most-active March cotton futures fell four cents to end at 96.48 cents, with the session high at $1.0085. Total volume traded on Thursday hit over 21,000 lots, little different from the 30-day norm, preliminary Thomson Reuters data showed.
The following deals were reported: 800 bales of cotton from Mir Pur Khas sold at Rs 4800, 1000 bales of cotton from Nawabshah at Rs 4800, 2000 bales of cotton from Upper Sindh at Rs 5700, 600 bales of cotton from Hasil Pur at Rs 5600/5700, 400 bales of cotton from Jahanian at Rs 5700, 1000 bales of cotton from Sadiqabad at Rs 5800/5900, 1000 bales of cotton from Rahim Yar Khan at Rs 5800/5900, 2000 bales of cotton from Bahawal Pur at Rs 5800, 1000 bales of cotton from Dera Ghaazi Khan at Rs 5900, 1000 bales of cotton from Rajan Pur at Rs 5900, 600 bales of cotton from Fort Abbas at Rs 5600, 1000 bales of cotton from Bahawal Nagar at Rs 5500/5600, 1000 bales of cotton from Burewala at Rs 5800/5900, 2500 bales of cotton from Khanewal at Rs 5850/5900, 1000 bales of cotton from Chichawatni at Rs 5800/5850, 1000 bales of cotton from Mian Chano at Rs 5800/5850, 1000 bales of cotton from Yazman Mandi at Rs 5800.
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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 17.11.2011
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37.324 Kgs 5,800 130 5,930 5,830 + 100
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Equivalent
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40 Kgs 6,216 130 6,346 6,239 + 107
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