Both buyers and sellers adopted cautious attitudes on the cotton market on Saturday ahead of Muharram holidays, dealers said The Karachi Cotton Association (KCA) official spot rate was unchanged at Rs 5,300, they said. Prices of seedcotton in Sindh were at Rs 1800-2300 and in Punjab at Rs 2000-2600, they said.
In ready dealings prices showed no major change as approximately 16,000 bales of cotton changed hands at Rs 4,000-5,400, they added. According to the market sources leading mills and spinners were on the sidelines just to see fresh development of rising phutti arrivals after the holidays.
The Pakistan Cotton Ginners Association (PCGA) issued fortnightly phutti arrivals report till December 1st, and that is 9.65 million bales, showing more than 1.3 million bales or 15.47 percent up against the last year, brokers said. On the other hand the ginners were also waiting for intervention by the Trading Corporation of Pakistan (TCP) to minimise the declining trend in the cotton prices, which is not bearable for the growers and ginners due to higher cost of production, experts said.
During the last several sessions, hectic buying was seen by the mills and spinners as ginners, who were not keen to hold cotton for a long time due to sharp fall in the rates, sold as much they can even below their psychological levels, they said. They also said that how the market will react to report of higher production of Phutti, it will be clear next week.
Reuters adds: On Friday the NY cotton futures ended the week with modest gains in the middle of a lower range amid light volume, as mills work down their inventories, analysts said. Key March cotton futures closed 0.54 cent higher at 91.84 cents per lb. It set its second inside trading day in a row, meaning a lower high and a higher low, as the range narrowed between 90.92 to 92.27 cents.
Analysts said they think the sideways range developing since November 21 is setting up for a break to the upside. An attempt to push lower on November 29 failed and light but consistent buying has kept cotton supported. On Friday, volume was especially thin at around 6,127 total contracts, close to 75 percent below the 30-day average, according to ICE Futures data.
The following deals were reported: 400 bales of cotton from Sultanabad at Rs 4000, 200 bales of cotton from Hala 4050, 1200 bales of cotton from Nawabshah at Rs 4300/4400, 400 bales of cotton from New Saeedabad at Rs 4600, 1000 bales of cotton from Khair Pur at Rs 4600/4700, 2000 bales of cotton from Upper Sindh at Rs 5150/5200, 400 bales of cotton from Faqirwali at Rs 5000, 600 bales of cotton from Bahawal Nagar at Rs 5100, 1000 bales of cotton from Haroonabad at Rs 5100, 400 bales of cotton from Burewala at Rs 5200, 400 bales of cotton from Qaboola at Rs 5200, 2000 bales of cotton from Khanewal at Rs 5200/5250, 400 bales of cotton from Dera Ghazi Khan at Rs 5250, ?400 bales of cotton from Hasil Pur at Rs 5250, 400 bales of cotton from Chichawatni at Rs 5275, 200 bales of cotton from Dhanot at Rs 5300, 1200 bales of cotton from Lodhran at Rs 5275/5300, 600 bales of cotton from Sadiqabad at Rs 5300, 200 bales of cotton from Liaquat Pur at Rs 5300, 200 bales of cotton from Ali Pur at Rs 5300, 400 bales of cotton from Fazil Pur at Rs 5300, 2000 bales of cotton from Bahawal Pur at Rs 5300, 1000 bales of cotton from Rahim Yar Khan at Rs 5300, 180 bales of cotton from Kabbirwala at Rs 5300/5350, 1200 bales of cotton from Rajan Pur at Rs 5400.
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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 02.12.2011
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37.324 Kgs 5,300 130 5,430 5,430 NIL
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Equivalent
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40 Kgs 5,680 130 5,810 5,810 NIL
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