Subdued business was seen on the cotton market on Monday as mills did not show any interest in the fresh buying due to ginners' stern attitude toward prices, dealers said. Karachi Cotton Association (KCA) official spot rate was inert at Rs 12,500, they said. In Sindh and Punjab phutti price of low type was at Rs 4000 and superior type also unchanged at Rs 5000, they said.
In ready business nearly 700 bales changed hands between Rs 11600-12500, they added. According to the market sources tug-of-war over prices continues between the buyers and sellers. Further rise in the global market may propel buyers to make fresh deal otherwise they might wait for decline in the rates, they said. On Monday China's benchmark cotton futures traded on the Zhengzhou Commodity Exchange rose sharply due to supply concerns, after Friday's US Department of Agriculture's report showed extremely tight US supplies.
The September cotton contract rose five percent as of GMT 0257 to 30,320 yuan ($4,636.506) per tonne. The USDA revised down its estimate for cotton ending stocks to 1.60 million bales in its latest monthly supply-and-demand report, while the average volume for the past 10 years was 5.8 million bales, said Dong Shuangwei, the research manager with Capital Futures, citing his own calculation.
In the meantime, there are signs of "robust expansion" in most advanced economies but a "possible moderation" of China's surging economic activity, the Organisation for Economic Co-operation and Development1 (OECD) said. The following deals were reported: nearly 400 bales from Ghotki sold at Rs 12500, 200 bales of cotton from Burewala at Rs 11600 and 100 bales from same station at Rs 11800, they added.
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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"
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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 09.04.2011
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37.324 Kgs 12,500 120 12,620 12,620 NIL
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Equivalent
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40 Kgs 13,396 120 13,516 13,516 NIL
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