Strong mills' demand persisted on the cotton market on Friday amid market anticipation about rise in prices following the upward trend in the global market but some analysts were of the opinion that rate may drift lower due to thin attendance during the pre-Eid sessions, dealers said on Friday.
The Karachi Cotton Association (KCA) official spot rate was raised by Rs 100 to Rs 6,500, they said. In the ready business nearly 7,000 bales of cotton changed between Rs 6350-6800, they said. The seedcotton in Sindh was higher at Rs 2700-2800 and rates in Punjab were also up at Rs 2700-2950, they added.
Market sources said that in line with the international track the local rates took a boost and rising gradually, which is in fact a support for the growers who were in crisis due to high cost of production but they are not able to gain profit because of fall in prices after projection of bumper crop.
They attributed the fresh rise to damage to the standing crop after recent rains in some parts of Sindh. Some brokers said that there are cloudy weather in both Sindh and Punjab, so it is most likely that prices may not fluctuate sharply due to expectations for good crop this year. In the meantime, many spinners were inquiring about the rates from the foreign countries to import cotton, if prices are matching with their psychological level, they will make deals, some experts said.
On Thursday the NY cotton futures ended lower due to investor sales sparked by global macroeconomic worries, but talk of crop problems in Pakistan and possibly top consumer China pared market losses, brokers said. Jitters over Europe's debt crisis and a raft of weak US economic data triggered a rout in global equities and spurred investors to the perceived safety of gold and US government bonds.
The key December cotton contract on ICE Futures US fell 0.87 cent to finish at $1.0695 per lb, moving from $1.0382 to $1.08. Trading volume totalled more than 14,000 lots, some 3.4 percent above the 30-day norm, Reuters data showed. Total volume traded on Wednesday hit 19,198 lots, up from the Tuesday level of 7,113 lots, which was the lowest level of business since May 23, ICE Futures US data showed.
The following deals were reported: 1000 bales of cotton from Shahdadkot sold at Rs 6350-6400, 800 bales of cotton from Tando Adam at Rs 6350-6400, 1000 bales from Sanghar at Rs 6350-6400, 400 bales of cotton from Mir Pur Khas at Rs 6350-6400, 600 bales of cotton from Burewala at Rs 6700-6800, 400 bales of cotton from Khanewal at Rs 6700-6800, 600 bales from Kabir Wala at Rs 6700-6800, 500 bales from Hasil Pur at Rs 6700, 400 bales from Multan at Rs 6700, 400 bales from Sahiwal at Rs 6550/6700, 400 bales from Lodhran at Rs 6600 and 600 bales from Chichawatni at Rs 6600/6700.
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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 18.08.2011
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37.324 Kgs 6,500 120 6,630 6,530 +100
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Equivalent
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40 Kgs 6,966 120 7,096 6,989 +107
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