Prices soar on renewed buying interest

Prices gained strength on the cotton market on Thursday on renewed buying by mills and spinners in the process of trading, dealers said. The official spot rate was higher by Rs 50 to Rs 6700, they said. In Punjab prices were higher by Rs 200 to Rs 3500-3750, as per 40 kg, they said. In the ready season, around 5,000 bales of cotton sold at Rs 6800-7000, they added.
According to some brokers, some leading mills and spinners made deals on market anticipations on rates to touch high levels in the near future. Small spinners also took part in the proceeding and were eager to book maximum quantity of cotton but most of them failed to finalise any deal. Cotton analyst, Naseem Usman said that local prices were tracking global trend owing to short supply position. Besides, he said that a meeting called by the Federal Cotton Committee (FCC) on Monday (March 6) has been postponed and now it will held on Friday (March 10) to estimate the cotton production for new season 2017-18, he said.
According to the weekly data of the United State of Agriculture Department (USDA), exports picked up by 31 percent. In India, cotton prices rose by Rs 100-400 per candy in a single day rally because shortage of quality lint, other experts said. According to Reuters, the New York cotton futures maintained rising trend on persistent demand on Wednesday. The following deals were reported: 400 bales of cotton from Bahawal Nagar at Rs 6800, 1200 bales from Khanpur at Rs 7000 and 2781 bales from Sadiqaqbad at Rs 7000, they 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 01-03-2017   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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