Bearish sentiment was again witnessed on the cotton market on Wednesday as spot rate and prices drifted lower in process of trading, dealers said. The official spot rate failed to retain its overnight firmness, slashed by Rs 50 at Rs 2950, they said.
Phutti prices in Sindh were lower by Rs 50 Rs 1400-1500 and in Punjab prices were quoted at Rs 1400-1550, they said. Some brokers said that despite the better phutti production, mills continued buying in anticipation of entry of the Trading Corporation of Pakistan (TCP).
There is rising perception that after the entry of the TCP, the prices will maintain a firm outlook, which will help the growers to keep the stock because presently they cannot because of the fears of further decline in the rates, they said.
On Tuesday the NY cotton futures finished marginally firmer on buying by small investors and the quiet tone may persist given the dearth of leads in the market, brokers said. The benchmark December cotton contract rose 0.02 cent to finish at 39.39 cents per lb, trading between 38.75 and 40 cents. Volume traded in the December contract was a meager 3,151 lots at 2:36 pm (1936 GMT). The March cotton contract rose 0.22 cent to conclude at 41.84 cents, dealing from 40.73 to 42.13 cents.
The following deals were reported: 1000 bales of cotton from Mirpur Khas-Sultanabad at Rs 2700-2750, 400 bales from Hyderabad at Rs 2900, 600 bales from Shahdadpur at Rs 2800, 400 bales from Sanghar at Rs 2850, 800 bales from Rohi at Rs 2950/3000, 600 bales from Khirpur at Rs 2750, 400 bales from Hala at Rs 2750, 1000 bales from Khanewal at Rs 3045-3050, 1000 bales from Burewala at Rs 3000-3075, 200 bales from Renala Khurd at Rs 3075, 800 bales from Mian Channu at Rs 2950-3075, 800 bales from Liaquatpur at Rs 3050, 200 bales from Jhang at Rs 3050, 1000 bales from Chani Goth at Rs 3050, 400 bales from Ali Pur at Rs 3040, 2600 bales from Dera Ghazi Khan at Rs 3025, 1000 bales from Shah Jamal at Rs 3000, 200 bales from Kajlal Pur at Rs 3000, 200 bales from Multan at Rs 3000, 400 bales from Bahawal Pur at Rs 3000, 400 bales from Yazman at Rs 3000, 600 bales from Ahmad Pur at Rs 3000, 1400 bales from Rajan Pur at Rs 3000, 1000 bales from Shadan Lund at Rs 3000, 400 bales from Faqirwala at Rs 3000, 400 bales from Kabirwala at Rs 3000, 400 bales from Rahim Yar Khan at Rs 3000, 400 bales from Taunsa Sharif at Rs 2975, 1200 bales from Bahawal Nagar at Rs 2965 and 200 bales from Duniya Pur at Rs 2950, they said.
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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"
MICRONAIRE VALUE BETWEEN 3.8 TO 4.9 NCL
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Rate Ex-Gin Upcountry Spot Rate Ex-Karachi
for Price Sales Tax @ 15%
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37.324 Kgs 3,950.00 100 3,050.00
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Equivalent
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40 Kgs 3,162.00 100 3,262.00
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