Slight improvement was seen on the cotton market on Thursday as mills showed interest in fresh buying, dealers said. The Karachi Cotton Association (KCA), official spot rate was inert at Rs 5300, they said. Prices of seedcotton in Sindh improvemed after gaining Rs 200 to Rs 1900-2300 and in the Punjab rates were at Rs 1800-2600, they said.
In the daily business, nearly 5000 bales of cotton changed hands between Rs 3900-5500, they added. Market sources said that the mills' active buying emerged to meet the near-term needs and some exporters inquired but did not finalise many deals due to falling trend in the exports.
It is expected that the ginners may cut down the prices of unsold stock of cotton to take back their money as they have spent huge amount as the cost of production, they said. Lack of enquiries from European Union (EU) countries, pushed the demand lower for the local textile products, they said. According to the Reuters in the NY cotton futures settled higher on Wednesday on mostly speculative and investor buying as players adjusted positions ahead of the release of a government sales report on Thursday, analysts said. The benchmark May contract on ICE Futures US rose 0.41 cent to end at 88.31 cents per lb, dealing from 87.86 to 89.49 cents.
Volume traded on Wednesday amounted to more than 12,700 lots, slightly more than 50 percent under the 30-day norm, Thomson Reuters data showed. US Agriculture Department's weekly export sales report will be released at 8:30 am EDT (1230 GMT) Thursday.
The following deals were reported: 400 bales of cotton from Mir Pur Khas sold at Rs 4200, 400 bales of cotton from Mian Chano (low quality) at Rs 3900, 200 bales of cotton from Qasoor (low quality) at Rs 4300, 400 bales of cotton from Faqir Wali at Rs 4400, 400 bales of cotton from Marot at Rs 4900, 200 bales of cotton from Dunia Pur at Rs 5000, 200 bales of cotton from Burewala at Rs 5135, 400 bales of cotton from Fort Abbas at Rs 5300, 200 bales of cotton from Bahawal Pur at Rs 5400, 400 bales of cotton from Mailsi at Rs 5400, 200 bales of cotton from Jalal Pur at Rs 5500, 1200 bales of cotton from Rahim yar Khan at Rs 5500.
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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 21.03.2012
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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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