Official spot rate was sharply up on the cotton market amid tight supplies due to fall in cotton arrivals and news of late sowing, dealers said. Official spot rate was raised by the Karachi Cotton Association (KCA) by Rs 100 at Rs 5800, they added.
Prices of seedcotton in Sindh were unchanged at Rs 2000-2400, same trend was seen in the Punjab as rates of both inferior and best types were inert at Rs 2100-2800, they said. Over 2600 bales of cotton changed hands between Rs 3900-6100, they added. Tight supply position caused firmness in the prices as ginners are not willing to sell cotton below the psychological level, they added. Exports of yarn and revival of cotton buying, helped the prices to keep the present levels, Naseem Usman said. President Zardari said that main hurdles would be removed and assured the Pakistan Cotton Ginners Association (PCGA) to extend facilities to boost cotton production, which is the only source of major part of foreign exchange earning, experts said. The positive factor, is growers were expecting that cotton production increase is likely to reach 18 million bales in the coming days, they added.
According to the Reuters on Monday the NY cotton futures closed near a month low on fund liquidation as investors scampered out of the spot contract before it goes into delivery on first notice day next week, traders said. The benchmark May cotton contract on the ICE Futures US exchange fell the 4.00 cents daily limit to end at 88.08 cents per lb, with the session top at 92.13 cents.
It was the lowest settlement close for cotton since March 20, according to Thomson Reuters data. The market has been moving in a wide band from 87 to 94 cents, basis the spot contract, since the start of March, Thomson Reuters data showed. Monday's estimated volume reached slightly over 45,500 lots, almost double the 30-day norm, according to Thomson Reuters data.
The following deals were reported: 400 bales of cotton from Shahdad Pur (low quality) sold at Rs 3900-4200, 400 bales of cotton from Khanewal at Rs 5700, 200 bales of cotton from Dunia Pur at the same rate, same figure from Dera Ghazi Khan at the same rate, same figure from Multan at the same rate, same number from Sahiwal at the same level, 400 bales of cotton from Bahawalpur at the same rate, same figure from Rahim Yar Khan at the same figure and 200 pales of cotton from Vehari at Rs 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 16.04.2012
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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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