Modest business was seen on the cotton market on Monday as most of the mills didn't take interest in new purchasing due to huge stock of cotton yarn with them, dealers said The Karachi Cotton Association (KCA) official spot was unchanged at Rs 6,200, they said. Seedcotton rates in Sindh were firm at Rs 2850-2900, prices in Punjab were higher by Rs 300-200 at Rs 2600-2800, they said.
In the ready business nearly 2500 bales changed hands between Rs 6100-6250, dealers added. Some analysts said that the world cotton yarn importers were not coming forward due to falling trend in the NY cotton futures, because they feel that prices will come down further. But this factor is causing a big problem for the local yarn sellers. This is the main factor, behind the decline in the rates and also causing some times low business activity, they said.
In the Punjab sporadic rains are continuing, which is tonic for the cotton production, they said. Trading activity was thin due to absence of many buyers and sellers owing to Shab-e-Barat, they added.
Commenting on the exports of textile products, Naseem Usman said that huge investment of around Rs 3 billion has been made in ginning industry during the current season to meet increased capacity need for cotton ginning, so more or less 40 new ginning units have been set up in the country.
He said that nearly, 30 new ginning units have been set up in Sindh where cotton crop is being estimated to touch five million bales against last year's 3.5 million bales. Besides, around 10 new ginning units have been established in Punjab whereas land for another 20 units has been acquired.
This indicates that in the coming days, the cotton production will further increase, once the government introduced certified BT cotton seeds in the country, other analysts said.
Naseem Usman also said that Hussain cotton factory in Shahdadpur was set up by a private firm of Karachi and it is expected that this plant will start operation next month, this is most likely that nearly 2200 bale might be ginned.
The following deals were reported: 400 bales of cotton from Sanghar sold at Rs 6200-6250, 200 bales of cotton from Mir Pur Khas at Rs 6200, same figure from Shahdadpur at the same rate, 600 bales from Tando Adam at same figure, 500 bales from Haroonabad at Rs 6100, 200 bales from Burewala at Rs 6200, same number from Chihawatni at the same amount and same number from Khanewal at the same price, dealers 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"
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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 16.07.2011
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37.324 Kgs 6,200 120 6,320 6,320 NIL
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Equivalent
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40 Kgs 6,645 120 6,675 6,765 NIL
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