Prices showed further increase on the cotton market on Tuesday due to persisting rise in the international market, dealers said. Karachi Cotton Association (KCA) official spot rate was unchanged at Rs 12500, they said. Phutti prices in Sindh were at Rs 4500 and in Punjab rates were at Rs 6400, they said. Nearly 500 bales of cotton changed hands at Rs 13000-14500 (on credit), they said.
Market sources said that the mills were in the sidelines owing to higher prices due to short production. In the meantime, it looks that the prices may not increase in the coming days as the rates fall in the New York cotton market, they said. On Monday, the US cotton futures closed higher on speculative buying but profit-taking knocked fiber contracts from record highs after the market rose the daily limit during the session, analysts said. The key May cotton contract on ICE Futures US rose 1.44 cents to finish at $2.1414 per lb, dealing from $2.1313 to the 7-cents limit up at $2.197.
Volume traded Tuesday though stood about 28,400 lots, over 10 percent below the 30-day norm, Thomson Reuters preliminary data showed. But open interest in the cotton market did not seem to be matching the surge in prices to new record highs.
Open interest in cotton stood at 175,284 lots as of March 4, a modest rise from the seven-month low at 174,074 lots as of February 28, data from ICE Futures US showed. The following deals reported: some 800 bales of cotton from Shanghar sold at Rs 13000, 400 bales from Ghotki at Rs 14000, 2200 from upper Sindh at Rs 14500 (credit), 400 bales from Bahawalpur at Rs 14000, 600 bales from Ahmedpur at the same rate and 400 bales from Khanpur at Rs 1400, they said.
===========================================================================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 05.03.2011
===========================================================================
37.324 Kgs 12,500 120 12,620 12,620 NIL
---------------------------------------------------------------------------
Equivalent
---------------------------------------------------------------------------
40 Kgs 13,396 120 13,516 13,516 NIL
===========================================================================
Comments
Comments are closed for this article.