Strong mills and exporters' buying pushed the prices a bit higher on the cotton market on Saturday, brokers said. The Karachi Cotton Association (KCA) official spot rate was unchanged at Rs 8,500, they said. In Sindh and Punjab, phutty price of low type was at Rs 2500 and that of superior type at Rs 3000, they said.
In ready business, over 10,000 bales of cotton changed hands between Rs 7,350-8,600, they added. Some brokers said that slight recovery in the NY cotton futures, propelled the buyers to make fresh deals in apprehensions that the rates may go up further in the coming days. Heap of cotton yarn is a major concern for the traders as they fear that new arrivals of cotton production will increase their worries, they said. According to a report, in India as a result of fall in export orders, traders are going to cutting down the textile production by 33 percent. Commenting on the recent depreciation of the rupee, they said that Pak textile exports may show further improvement due to cheaper rates.
On Friday the US cotton futures settled mixed as fibre contracts languished and players mulled what market direction next week, brokers said. The key July cotton contract on ICE Futures US shed 0.04 cent to close at $1.5561 per lb, dealing from $1.5006 to $1.5702. On the week, the market's benchmark contract is up 7.21 percent.
New-crop December rose 0.57 cent to finish at $1.1976, moving between $1.1711 and $1.2024. Volume stood around 11.300 lots, almost 50 percent below the 30-day norm, Thomson Reuters preliminary data showed. The following deals were reported: 800 bales of cotton from Khan Pur sold at Rs 8500, 400 bales of cotton from Kabir Wala at Rs 8600, 200 bales of cotton from Rajan Pur at Rs 8400, 370 bales from Shah Jewana at Rs 8100, 209 bales from Mailsi at Rs 7350, 400 bales from Rahim Yar Khan at Rs 8550 and 8400 bales from Khan Pur at Rs 8000.
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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 20.05.2011
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37.324 Kgs 8,500 120 8,620 8,620 NIL
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Equivalent
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40 Kgs 9,109 120 9,229 9,229 NIL
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