Spot rate was higher on the cotton market on Thursday amid moderate trading activity, dealers said. The official spot rate was up by Rs 50 to Rs 4700, dealers said. Seed cotton prices in Sindh were at Rs 1700-2000, In Punjab, prices were at Rs 1700 and Rs 2300, they said. In the ready business, over, 4000 bales of cotton changed hands between Rs 4700 and Rs 5000, they said.
Market sources said that prices of cotton showed firmness after monsoon rains. If rains prolonged in the cotton belt, rates may go up further in times to come, cotton analyst, Naseem Usman said. Reports said that the Trading Corporation of Pakistan (TCP) got very poor response from spinners against their bids offer for the sale of 95,000 bales from last season.
Reuters adds: Benchmark cotton futures on ICE Futures US fell on Wednesday after failing to sustain moves above a key technical level despite a strong move upwards the prior session, with a stronger US dollar also providing pressure.
The most-active December contract briefly exceeded its 10-day moving average of 64.66 cents a lb on Tuesday, before settling just below it. Cotton traded above Wednesday's 10-day moving average of 64.57 in early trading, but its inability to push above the level prompted a loss of momentum.
The ICE cotton contract for December delivery settled down by 0.71 cent on Wednesday, a 1.1 percent loss, to 63.89 cents per pound. The following deals reported: 400 bales of cotton from Hyderabad sold at Rs 4700, same figure from Sanghar, 200 bales from Jhole, 400 bales from Shahdadpur, same figure from Tando Adam same number from Kotri all done at the same rate, 200 bales from Bhakhar at Rs 4875, 400 bales from Sumandary finished at the same rate, same figure from Bahawana at Rs 4900, 200 bales from Renala Kurd, same figure from Burewala, same number from Arifwala done at the same rate and 400 bales from Haroonabad at Rs 5000, dealers said.
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The KCA Official Spot Rate for Local Dealings in Pakistan 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 29.07.2015
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37.324 Kgs 4,700 150 4,850 4,800 +50
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Equivalent
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40 Kgs 5,037 160 5,197 5,143 +54
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