Prices recovered overnight losses on the cotton market on Friday as most of the buyers came back to cover their immediate needs, dealers said. The official spot rate recovered by Rs 50 to Rs 5,300, dealers said. In Sindh, seed cotton prices were at Rs 1500-2700, and in Punjab prices gained Rs 100 to Rs 1700 and Rs 2900, they said.
In the ready business, around 1400 bales of cotton changed hands between Rs 4800 and Rs 5600, they said. Some brokers said that stock of fine quality is diminishing with the passage of time, so needy buyers managed to finalise deals.
Cotton analyst, Naseem Usman said that as a whole the situation has not changed, but a few buyers were keen to grab best quality at the present rates. Commenting on the thin activity, other analysts said that China is sidelined, which is adding dullness in the market.
Reuters adds: Cotton futures stemmed a four-day losing streak on Thursday, rising off the lowest level in 6-1/2 years as investors covered bearish bets. Traders took stock of acreage forecasts from the USDA, which projected all-cotton plantings at 9.4 million acres in the country in 2016, compared to 8.6 million acres in 2015. The forecast was broadly in line with expectations for an increase in production as prices of competing crops languish. The following deals reported: 200 bales of cotton from Hasilpur at Rs 4800, 400 bales from Rahim Yar Khan at Rs 5500, same figure from Yazman Mandi at Rs 5550 and same number from Rajanpur at Rs 5600, 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 1-1/32"
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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 25-02-2016
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37.324 kg 5,300 135 5,435 5,385 +50
Equivalent
40 kgs 5,680 145 5,825 5,771 +54
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