Prices were higher on the cotton market on Friday amid tight supply and hovering fears of likely delay in arrival of new crop due to bad weather condition, dealers said. Official spot rate was unchanged at Rs 5850, they added. Prices of seedcotton in Sindh were inert at Rs 2100 and Rs 2400, in the Punjab, cottonseeds were also unchanged at Rs 2200 and Rs 2800, they said.
As a result of slow supply, a deal from Ghotki done at Rs 6,600, Over 7000 bales of cotton changed hands between Rs 5200-6600, they said. Market sources said that mills were active, covering the short-term needs following the apprehensions about increase in the rates, they said. Experts were inquiring about the rates, but they could not finalise deal, mainly because of quality factor, they added. Now it is very clear that prices may go up in the coming days, because ginners have no huge stock of unsold cotton, they added.
According to the Reuters, the NY cotton futures closed mostly higher for the third straight session Thursday on investor buying as positions in the spot May contract were liquidated ahead of first notice day for deliveries next week, analysts said.
The July cotton contract on the ICE Futures US exchange rose 0.70 cent to finish at 90.72 cents per lb, dealing from 89.70 to 91.41 cents. It was an inside day as that range held within Wednesday's 88.24 to 92.25 band. On Monday, the market closed at its lowest since March 20, according to Thomson Reuters data. On a benchmark basis, the spot contract has remained trapped in a range between 87 and 94 cents since the start of March, Thomson Reuters data showed. Thursday's estimated volume was near 19,500 lots, about a fifth under the 30-day norm, according to Thomson Reuters data.
The following deals were reported: 2700 bales of cotton from Ghotki at Rs 6,600, 200 bales from Dunia Pur at Rs 5200, same number from Mamo Kanjan at Rs 550, 1200 bales of cotton from Bhawal Pur at Rs 5800-6000, 200 bales of cotton (mill to mill) at Rs 5900, same figure from Faqir Wali at Rs 6125 800 bales from Shujaabad a Rs 6100-6500, they said.
===========================================================================
The KCA Official Spot Rate for Local Dealings in Pak Rupees
---------------------------------------------------------------------------
FOR BASE GRADE 3 STAPLE LENGTH 1-1/32"
---------------------------------------------------------------------------
MICRONAIRE VALUE BETWEEN 3.8 TO 4.9 NCL
===========================================================================
Rate Ex-Gin Upcountry Spot Rate Spot Rate Difference
For Price Ex-Karachi Ex. KHI. As Ex-Karachi
on 19.04.2012
===========================================================================
37.324 Kgs 5,850 130 5,980 5,980 NIL
---------------------------------------------------------------------------
Equivalent
---------------------------------------------------------------------------
40 Kgs 6,269 130 6,399 6,339 NIL
===========================================================================
Comments
Comments are closed for this article.