Early monsoon rains in cotton growing areas to benefit standing crop

Most of the cotton growing areas in the Punjab received early monsoon rains, which are beneficial for standing cotton crop, Naseem Usman said after a comprehensive survey of cotton belt. The Karachi Cotton Association (KCA) official spot rate was left unchanged at Rs 8,650, they said.
Expectations for higher-than-expected production for the next season, pushed the seedcotton prices lower in Sindh, shedding another Rs 100 to Rs 3650-3700 and in Punjab directions were same as prices fell by Rs 100-150 to Rs 3700-3750, they said. In ready business nearly 2000 bales of cotton changed hands at Rs 8450-8900, they added. Some experts also said that the Ministry of Farm and Livestock (Minfal) after good early cotton production is estimating some 15-16 million bales of cotton for the next season.
It is before time to predict about the exact size of cotton production but it is expected that the country may achieve 30-40 percent higher production during the next season, Naseem said. He also said "if we get the desired figure during the coming season, the country will be able to export one million bales of cotton".
On Tuesday the US cotton futures ended higher, as a weak dollar and accelerated cross-commodity rally helped fibre values overcome initial selling pressures tied to weaker overseas markets. The key December cotton contract on ICE Futures US eked out a 0.02-cent gain to settle at $1.2201 per lb, after dealing from $1.1977 to $1.2328.
Cotton bounced back from earlier downside pressure linked to China's cotton futures market, where the Zhengzhou Commodity Exchange January cotton futures fell sharply for the second straight day. Positive momentum built from there, with a generally upbeat tone in most other commodity markets feeding the gains. As a result, the Reuters-Jefferies CRB Index, a global commodities benchmark, posted its biggest one-day gain in six weeks as optimism for a resolution to Greece's debt crisis boosted investors' risk appetite.
Despite the positive reversal, total market volume in cotton futures stood at a paltry 6,000 lots, more than 70 percent below the 30-day norm, Thomson Reuters preliminary data showed. The spot July cotton contract fell 1.09 cents to finish at $1.6091 per lb.
The following deals were reported: 508 bales of cotton from Sadiqabad sold at Rs 8500, 381 bales of cotton from Sadiqabad sold at Rs 8600, 500 bales of cotton from Rajan Pur at Rs 8700, 200 bales of cotton from Khan Pur at Rs 8450, 400 bales from Haroonabad at Rs 8725 and 100 bales of cotton from Burewala at Rs 8725.

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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 28.06.2011

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37.324 Kgs         8,650      120        8,770        8,770             NIL

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Equivalent

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40 Kgs             9,270      120        9,390        9,390             NIL

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