Ginners prefer to sell at obtaining price due to fresh fall in New York cotton futures, spot rate

Ginners showed no resistance in selling cotton after fresh decline in the NY cotton futures and spot rate, dealers said on Tuesday. The Karachi Cotton Association (KCA) official spot rate was decreased for the second day in a row, curtailing by Rs 100 to Rs 5,600, they said.
Prices of seedcotton came down in Sindh at Rs 2000-2550 and in Punjab rates also came down to Rs 2300-2700, they said. In ready dealings more than 30,000 bales of cotton changed hands at Rs 3,700-5750, they added. In the meantime, textile exports fell by 14 percent during the month of October, which is giving an impression that the ginner may not keep huge unsold stock with them mainly because of steady phutti arrivals, they said.
Some brokers said that steady phutti arrivals may cause further decline in the rates. Under the circumstances, the growers and ginners were trying to dispose off all unsold stock as reports are reaching that Indian cotton prices also coming down on falling demand, they added.
According to a report, cotton prices in India are likely to fall substantially in the next two months as the biggest importer, China, cuts orders at a time when domestic supplies are set to peak and Indian buyers remain on the sidelines as demand for yarn is weak. Indian cotton, now trading at 37,200 rupees ($710) per candy of 356 kg, or 104,000 rupees ($2,000) per tonne, is set to fall by between 14 percent and 15 percent to 32,000 rupees per candy in December and remain at that level, said B. A. Patel, the country's joint textile commissioner.
On Monday the US Cotton futures ended down by their daily limit on wholesale investor liquidation as European debt woes and budget deadlock in the US underscored fears a global recession would cripple demand for cotton, analysts said. Global stocks sank on Monday due to worries over out-of-control debt on both sides of the Atlantic.
The spot December cotton contract on ICE Futures US dropped four cents to finish at 90.81 cents per lb, with the day's top at 95.78 cents. The now most-active March cotton futures fell 2.86 cents to end at 90.41 cents, moving from 90.16 to 93.71 cents. Total volume traded on Monday hit almost 29,400 lots, one-third above the 30-day norm, preliminary Thomson Reuters data showed.
The following deals were reported: 400 bales of cotton from Mir Pur Khas sold at Rs 3700, 2000 bales of cotton from Khair Pur at Rs 5100, 2000 bales of cotton from Upper Sindh at Rs 5400, 400 bales of cotton from Bahawal Nagar at Rs 5300, 400 bales of cotton from Hasil Pur at Rs 5400, 200 bales of cotton from Fort Abbas at Rs 5400, 200 bales of cotton from Jahanian at Rs 5400, 400 bales of cotton from Mian Channo at Rs 5450, 200 bales of cotton from Multan at Rs 5475, 400 bales of cotton from Khan Pur at Rs 5500, 800 bales of cotton from Lodhran at Rs 5500, 200 bales of cotton from Dunia Pur at Rs 5500, 400 bales of cotton from Liaquat Pur at Rs 5500, 400 bales of cotton from Gojra at Rs 5500, 400 bales of cotton from Dera Ghaazi Khan at Rs 5500, 1000 bales of cotton from Shujabad at Rs 5500, 800 bales of cotton from Jalal Pur at Rs 5500, 1000 bales of cotton from Ahmed Pur at Rs 5500, 1000 bales of cotton from Noor Pur at Rs 5500, 400 bales of cotton from Ghazi Ghat at Rs 5500, 400 bales of cotton from Head Bekani at Rs 5500, 2000 bales of cotton from Bahawal Pur at Rs 5500, 400 bales of cotton from Vehari at Rs 5500, 600 bales of cotton from Chichawatni at Rs 5500, 2000 bales of cotton from Burewala at Rs 5500/5600, 200 bales of cotton from Jatoi at Rs 5600, 2200 bales of cotton from Rahim Yar Khan at Rs 5600, 1000 bales of cotton from Sadiqabad at Rs 5600, 2000 bales of cotton from Khanewal at Rs 5600, 2000 bales of cotton from Khanewal at Rs 5600/5700, 3000 bales of cotton from Rajan Pur at Rs 5650/5750, 600 bales of cotton from Tonsa Sharif at Rs 5700, 800 bales of cotton from Shadan Lund at Rs 5700, 400 bales of cotton from Fazil Pur at Rs 5750.

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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 21.11.2011

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37.324 Kgs       5,600       130       5,730        5,830              -100

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Equivalent

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40 Kgs           6,002       130       6,132        6,239              -107

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