Trading activity improved on the cotton market on Friday as mills did buying to meet their urgent needs, dealers said. Karachi Cotton Association (KCA) official spot rate was unchanged at Rs 11800, they said. Phutti prices in Sindh and Punjab were unchanged at Rs 4000 and Rs 5200, they said.
Approximately 5,000 bales of cotton changed hands between Rs 11000-12200, dealers added. According to the market sources the mills were active to meet some urgent requirements. In the meantime, the ginners did not show any interest in lowering the prices due to short stock with them.
Commenting on the subdued business during the week, some experts said that political uncertainty forced the buyers to keep to the sidelines to observe the fresh developments. The PML-N (Pakistan Muslim League-Nawaz) was going to decide whether it will keep the Pakistan People's Party (PPP) members in the Punjab provincial coalition.
Besides, the economic scenario, regarding the fiscal deficit following a rise in international oil prices is also a major development, which is forcing the nation into the unforeseen uncertainties, they said. International oil prices hovered near 111 dollars a barrel on Friday in Asia and Brent oil prices vaulted more than seven percent to almost 120 dollars on Friday before pulling back.
Besides, rising tension in the Middle East also is an adding factor behind the thin and slight fall in the current rates of cotton, they said. On Thursday the US cotton futures finished lower for a fourth straight day, as a USDA crop report showing big crop plantings in some agricultural commodities triggered hefty selling in the cotton market.
March cotton finished down 5.28 cents or 2.8 percent at $1.8128 per lb, having traded in a range between $1.7900 per lb and $1.8507 per lb. Huge US corn and soybean plantings this spring will likely fail to refill razor-thin stocks enough to quell the surge in grain prices, the US Agriculture Department said.
The following deals were reported: 600 bales of cotton from Sanghar sold at Rs 11000, 400 bales from Haroonabad at the same rate, same figure from Faqirwali at the same rate, 800 bales of cotton from Rajan Pur at Rs 11500-12000, 400 bales of cotton from Ahmedpur at Rs 11700, 400 bales from Rahim Yar Khan at Rs 12000, same figure from Noor pur at the same rate, same number from Uch Sharif at the same rate and 1000 bales from Fazilpur at Rs 12000-12200.
===========================================================================
The KCA Official Spot Rate for Local Dealings in Pak Rupees
---------------------------------------------------------------------------
FOR BASE GRADE 3 STAPLE LENGTH 1-1/32"
---------------------------------------------------------------------------
MICRONAIRE VALUE BETWEEN 3.8 TO 4.9 NCL
===========================================================================
Rate Ex-Gin Upcountry Spot Rate Spot Rate Difference
For Price Ex-Karachi Ex. KHI. As Ex-Karachi
on 24.02.2011
===========================================================================
37.324 Kgs 11,800 120 11,920 11,920 NIL
---------------------------------------------------------------------------
Equivalent
---------------------------------------------------------------------------
40 Kgs 12,646 120 12,766 12,766 NIL
===========================================================================
Comments
Comments are closed for this article.