Official spot rate, lint, phutti prices retain previous levels on cotton market

Business volume was on higher side on cotton market on Wednesday, spot rate phutti and lint prices were unchanged, dealers said. KCA retained the official spot rate at overnight level ie Rs 5,800, they said. Prices of the seed cotton were also unchanged in Sindh at Rs 1900-2400 and in Punjab at Rs 2100-2800, they said.
In ready business over 27,000 bales of cotton changes hands between Rs 4,550-6,100 they added. The market is supported both in terms volume and prices by foreign buying as Pakistan cotton prices are more favourable for them, the market expert said. According the Reuters report: New York Cotton futures closed lower on Tuesday on investor sales as the market declined for the first time in four sessions, with most players waiting for leads on its next move, analysts said. The key March cotton futures on ICE Futures US fell 1.19 cents, off by 1.2 percent, to settle at 98.18 cents per lb, just above Monday's low of 98.06 cents. The contract had been on a steady uptrend that began when it hit a 17-month low on December 14.
Volume traded on Tuesday was about 19,500 lots, around a quarter over the 30-day norm, according to Thomson Reuters data. "Everything is in place for a correction," said Mike Stevens, an independent cotton analyst in Mandeville, Louisiana. But he said that every time cotton is ripe for a downward correction, support emerges and pushes fiber futures back up. "It (cotton) is resilient," said Stevens. Fundamentally, the market has derived strength from buying by China, the world's leading consumer of cotton for its textile and apparel industry.
Analysts said business may slow down this week as the Chinese celebrate their New Year. Other technical resistance targets for the March cotton contract loom at 99.95 cents a lb, and then though the key $1 psychological level and then $1.02. A close in the March contract below last Tuesday's low of 95.67 cents would likely lead to further losses leading down to 94, then 91 cents, analysts said. Cotton's open interest - an indicator of investor exposure - stood at 162,671 lots as of January 23, up for a ninth session and rising about seven percent so far this year. -
The following deals were reported: 400 bales of cotton from Tando Adam sold at Rs 4550, 400 bales from Shahdad Pur at Rs 4600, 400 bales from Hyderabad at Rs 4600, 400 bales from Mir Pur Khas at Rs 4700, 400 bales from Khair Pur at Rs 5500, 400 bales from Ghotki at Rs 5800, 400 bales from Panu Aqil at Rs 5800, 1000 bales from Dehrki at Rs 6000, 400 bales from Dunia Pur at Rs 5400, 400 bales from Jahanian at Rs 5400, 400 bales from Kot Radha Kishan at Rs 5400, 400 bales from Chinute at Rs 5500, 800 bales from Haroonabad at Rs 5500/5600, 1200 bales from Vehari at Rs 5500/5765, 400 bales from Multan at Rs 5650, 800 bales from Hasil Pur at Rs 5650, 600 bales from Liaquat Pur at Rs 5750, 1000 bales from Fort Abbas at Rs 5775/5800, 1200 bales from Khanewal at Rs 5800/5850, 1400 bales from Rajan Pur at Rs 5800/5900, 3400 bales from Rahim Yar Khan at Rs 5850/6000, 600 bales from Tonsa Sharif at Rs 5900, 800 bales from Kehror Pakka at Rs 5950, 400 bales from Kabir Wala at Rs 5900, 200 bales from Pul Bagarh at Rs 5950, 400 bales from Mohammad Pur Dewan at Rs 6000, 400 bales from Bahawal Pur at Rs 6000, 3800 bales from Mian Wali at Rs 6000/6050, 1000 bales from Sadiqabad at Rs 6000, 1000 bales from Burewala at Rs 6000, 2400 bales from Khan Pur at Rs 6000/6100.

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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 24.01.2012

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37.324 Kgs       5,800       130       5,930        5,930               NIL

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Equivalent

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40 Kgs           6,216       130       6,346        6,346               NIL

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