Cotton prices touched seasonal high on the cotton market on sustained buying amid hovering fears of short supply in the coming days, dealers said on Friday.
The official spot rate was up by Rs 50 to Rs 6700, dealers said. In Sindh, seed cotton prices were at Rs 3200-3550, they said. In Punjab, phutti rates were at Rs 3300 and Rs 3850, as per 40 kg, they added.
In the ready session, over 12,000 bales of cotton changed hands between Rs 5700 and Rs 7300, they said.
Market sources said that the Pakistan Cotton Ginners Association (PCGA) issued its fortnightly cotton arrivals report till 31st January at 10.63 million bales, at the same time, it is interesting to note that 10.63 percent is showing an increase against the last year.
Cotton analyst, Naseem Usman, said that the rates to maintain upward march in days to come. Some other experts also observed that in year 2010-11, the cotton prices hit at Rs 14000. But now rates may touch Rs 7500 due to rising demand against the short supply, they noted.
Today, volume of business showed an improvement due to sustained buying by mills and spinners, they said.
Other analysts said that just few days back, most of the leading buyers were taking interest in purchasing of fine quality, but at the same time, they were not keen to pay above their psychological levels.
Now under the circumstances, they were ready to pay more owing to rising cotton prices in the global market.
United States Department of Agriculture (USDA), cotton report showed a decline in exports during the fortnight.
It is most likely that prices would move up further, when the Chinese markets reopen after the Lunar New Year holidays.
Adds Reuters: ICE cotton futures settled higher for the third straight session on Thursday, hitting a fresh six-month high, helped by strong export sales data.
The March cotton contract on ICE Futures US reached a peak of 77.40 cents a lb on Thursday, the highest since August 5.
The following deals reported: 400 bales from Shahdadpur at Rs 5700, 5801 bales from Ghotki at Rs 7200 (Conditional), 1400 bales from Mianwali at Rs 6100/7100, 1400 bales from Shujabad at Rs 6700/7000, 600 bales from Ahmedpur at Rs 6975 and 3434 bales from Muridwala at Rs 7300 (Conditional), dealers said.
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The KCA Official Spot Rate for Local Dealings in Pakistan Rupees
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FOR BASE GRADE 3 STAPLE LENGTH 1-1/16"
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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 Expenses Ex-Karachi Ex. KHI, As Ex-Karachi
on 02-02-2017 in Rupees
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37.324 kg 6,700 135 6,835 6,785 + 50/-
Equivalent
40 kgs 7,180 145 7,325 7,272 + 53/-
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