Rates maintained firm trend on the cotton market on Wednesday as growers stopped selling at current prices on expectations of increase in prices in the near future, dealers said. The official spot rate was unchanged at Rs 4,500, dealers said. Seed cotton prices in Sindh were at Rs 2300 and Rs 2350 and in Punjab rates at Rs 1800 and Rs 2250, they said. In the ready business, over 13,000 bales of cotton changed hands between Rs 4500 and Rs 4575, they said.
According to the market sources, ginners were unwilling in fresh selling because they were hoping for better return in times to come. Cotton analyst, Naseem Usman said the ginners bought fine quality of cotton in a big way and the mills also indulged in buying to replenish their stock. Some experts said that the growers adopted the attitude as dollar gained solid ground versus the dollar.
Reuters adds: ICE cotton futures hit a two-week low on Tuesday as speculators continued liquidating long positions following a dramatic selloff on Monday, when a plunge in global equity markets sent cotton tumbling from levels near six-week highs. December cotton on ICE Futures US settled down by 0.89 cent on Tuesday, a 1.4 percent loss, at 63.16 cents per pound, after falling as low as 62.86 cents a pound, its lowest level since August 12.
Total futures market volume fell by 18,781 to 25,919 lots. Data showed total open interest fell 9,254 to 187,406 contracts in the previous session. Certificated cotton stocks deliverable as of August 24 totalled 80,881 480-lb bales, down from 82,508 in the previous session. The dollar index was up 1.29 percent. The Thomson Reuters Core Commodity CRB Index, which tracks 19 commodities, was up 0.79 percent. The Relative Strength Index in the most-active contract fell to 40.584.
The following deals reported: 400 bales of cotton from Khipro at Rs 4500, 1800 bales from Shahdadpur at Rs 4500-4550, 1600 bales from Sanghar at the same rate, 2000 bales from Mirpurkhas at the same rate, 400 bales from Kotri at Rs 4525, 1400 bales from Tando Adma at Rs 4525-4550, 200 bales from Sahhari at Rs 4500, 600 bales from Sahiwal at Rs 4575, 200 bales from Gaggo Mandi at the same rate, 400 bales from Chichawatni at Rs 4575-4600, 1000 bales from Burewala at the same rate, 200 bales from Reala Khurd at Rs 4600, same figure from Mian Chano at the same level, 400 bales from Khanewal at Rs 4550-4575, same figure from Arifwala at Rs 4575, same figure from Mongi Bangla and same number from Jahania at the same rate, 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 25.08.2015
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37.324 Kgs 4,500 135 4,635 4,635 Nil
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Equivalent
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40 Kgs 4,823 145 4,968 4,968 Nil
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