Marginal variations were witnessed in the prices amid modest trading on cotton market on Saturday, dealers said. The official spot rate was unchanged at Rs 5,300, they said. Prices of seedcotton in Sindh were at Rs 1900-2300 and in the Punjab at Rs 2000-2650, they said. In ready dealings over 5000 bales of cotton changed hands at Rs 4400-5500, they added.
According to the market sources, as was expected cotton market did not react to news that India would allow cotton cleared by customs before March 4 to be exported. The mills and spinners were not looking very active in covering the forward deals as they expect the prices to decline, they said.
But cotton analyst, Naseem Usman was of the opinion that the rates to continue present trend in the near future. Some ginners, under the circumstances, were worried about their money struck in the crop, other brokers said. According to the Reuters on Friday the NY cotton futures finished lower after USDA estimated higher production world-wide, but suspected consumer buying trimmed losses in fiber contracts, analysts said.
The benchmark May contract on ICE Futures US declined 0.76 cent to finish at 88.80 cents per lb, dealing from 88.25 to 90.46 cents. For the week, the market was up 0.64 percent. Volume traded on Friday reached almost 22,000 lots, about 10 percent under the 30-day norm, Thomson Reuters data showed.
The following deals were reported: 1000 bales of cotton from Mir Pur Khas sold at Rs 4400, 400 bales of cotton from Murid Wala at Rs 4850, 400 bales of cotton from Multan at Rs 4900, 200 bales from Jhang at Rs 4900, 200 bales from Basti Malook at Rs 5200, 400 bales from Fort Abbas at Rs 5250, 400 bales from Bahawal Pur at Rs 5300, 400 bales from Kabbir Wala at Rs 5350, 200 bales from Dunia Pur at Rs 5400, 400 bales from Sadiqabad at Rs 5400, 400 bales from Lodhran at Rs 5450, 400 bales from Rahim Yar Khan at Rs 5400 and 400 bales from Khan Pur at Rs 5500.
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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 09.03.2012
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37.324 Kgs 5,300 130 5,430 5,430 NIL
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Equivalent
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40 Kgs 5,680 130 5,810 5,810 NIL
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