Prices held the overnight firmness on the cotton market on Saturday in the process of modest trading, dealers said. The official spot rate was unchanged at Rs 5500, dealers said. In the ready session, around 2400 bales changed hands between Rs 4500-5300, they said. Seed cotton prices in Sindh were at Rs 2100-2700 and in Punjab at Rs 2500-3100, they said.
According to the market sources, some leading mills were on the sidelines owing to less buying interest. Other experts attributed the fall in activity to larger stock with the leading buyers as they had bought major stock than their needs, so some exporters selling their cotton stock to needy mills. Commenting on the State Bank of Pakistan (SBP) decision in which it has reduced interest rate by 100 basis points from 8.0 percent to 7.0 percent for next two months, cotton analyst, Naseem Usman said that traders hailed the decision and hoping business activities to revive in the coming days.
Reuters adds: ICE cotton futures fell for the fifth straight session, ending their worst week in more than six months as a stronger dollar continued to prompt speculator liquidation, though traders noted prices remained locked in a tight trading range.
Cotton contracts for July settled down by 0.43 cent on Friday, a 0.7 percent drop, to 63.30 cents per pound. It traded within a range of 63.28 and 64.12 cents a pound. July cotton ended the week down 3.54 cents, or 0.5 percent, its sharpest weekly decline since the week ended November 14. July cotton's discount to December cotton rose to 1.08 cents a lb, from 0.97 cents a lb the prior session. Total futures market volume fell by 4,985 lots to 22,521. Data showed total open interest gained 1,722 to 187,272 contracts in the previous session.
The following deals reported: 500 bales of cotton from Kot Ghulam Mohammad at Rs 4500, 600 bales from Shahdadpur at the same rate, same figure from Tando Adam at Rs 4700, 600 bales from Qaboola at Rs 5450-5700 and 200 bales from Chichawatni at Rs 5700, they said.
===========================================================================
The KCA Official Spot Rate for Local Dealings in Pakistan 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 22.05.2015
===========================================================================
37.324 Kgs 5,500 150 5,650 5,650 NIL
---------------------------------------------------------------------------
Equivalent
---------------------------------------------------------------------------
40 Kgs 5,894 160 9 NC4 6,054 NIL
===========================================================================
Comments
Comments are closed.